On January 1, 2025, major changes came into force in the VAT field, with repercussions not only on tax liability, but also potentially on new administrative requirements and financial consequences.
The companies concerned therefore need to assess their tax obligations, and anticipate the possible impact on their operational processes, contract management and accounting systems, in order to implement the necessary adjustments as quickly as possible.
Electronic procedures
Registration and submission of VAT statements can now only be carried out via the electronic portal of the Federal Tax Administration (FTA). However, certain procedures, such as applications for group taxation authorization, adherence to the “net tax liability rate” (NTR) and “flat rate” (FLR) methods, and withdrawal of the declaration of tax liability, have been postponed until January 1, 2027.
Annual VAT statement
Small and medium-sized enterprises (SMEs), i.e. companies with sales from taxable services of up to CHF 5,005,000 including VAT, may file a single annual statement instead of four quarterly statements. The request may be made no later than 60 days after the start of the tax period from which the change is to be made, provided that the taxable person has not exceeded the above-mentioned limit during the previous tax period, and has submitted all VAT statements and paid all related claims on time during the previous three tax periods, or since the start of his tax liability.
TDFN and TaF
Until 2024, an affiliate could only apply a maximum of two TDFNs. This limit has now been abolished. Additional SDLTs may be applied if the activity represents at least 10% of total sales from taxable services.
From 2025 onwards, any change from the effective method to the flat-rate method (TDFN/TaF), or vice versa, will entail a correction similar to that applied in the event of a change of use.
This adjustment will relate to the residual value of goods and services acquired. Until now, such a change of method did not entail any correction. The previous deadlines for a change of method have been reduced to a single tax period.
It should also be noted that certain TDFN and TaF rates have been reassessed.
Online platforms
An important change concerns the introduction of tax liability for electronic platforms.
Provision of personnel
These platforms are now considered to be taxable service providers. This means that they must pay VAT on sales generated on their platform, even if they are not acting as a vendor.
Until 2024, only the provision of personnel by non-profit religious or philosophical institutions was excluded from the tax.
From 2025, this exclusion will be extended to any non-profit institution that rents out services with the following objectives:
- patient care ;
- welfare and social security ;
- child and youth protection ;
- education and training ;
- ecclesiastical, charitable or public utility purposes
Subsidies and public bodies
From now on, in order for funds paid by a public authority to be deemed subsidies for VAT purposes, the public authority must expressly qualify the recipient as such.
Funds include subsidies, public contributions, financial aid, non-refundable aid and compensation. In addition, the beneficiary taxable person must have declared such funds under number 900 of the VAT statement for the period in which they were received, or in the annual reconciliation.
Funds paid by public authorities without exact designation must meet the following three cumulative conditions to qualify as grants:
1. granted by a public authority;
2. the public authority receives no consideration from the beneficiary;
3. the granting of the subsidy is, in principle, based on a legal foundation (law, ordinance, regulation, decree, etc.).
Taxes on acquisitions and transfers of emission rights
Until now, the transfer of emission rights and similar certificates was a service governed by the place of destination. From 2025, such transfers will be subject to acquisition tax by the acquirer, whether the supplier is located in Switzerland or abroad.
Other adjustments
Other adjustments have also come into force. These include the exclusion of registration fees for cultural events from the scope of the tax, and the conditional exclusion of services resold by travel agencies, including related services provided by the latter (the option remains available in the latter case).
Swiss Certified Accountant, Director
This publication contains general information and is not a substitute for detailed research or expert advice. No liability can be accepted for its content. For specific questions, please contact the author.
