Switzerland | Upcoming Amendments to Federal VAT Act
On 2 June 2017, the Swiss Federal Council set the agenda for a
partial revision of the Federal Act on VAT. The partial revision
makes a number of (rather technical) amendments to the existing
Swiss VAT law. We would like to highlight two changes which have a
particular impact on foreign enterprises doing business in
Switzerland.
► Changes to the Small Businesses Exemption
Under the current law, businesses which achieve less turnover
than CHF 100'000 p.a. from taxable supplies in
Switzerland are exempt from registering for VAT (with the
option to register on a voluntary basis in order to benefit from an
input tax deduction). As of 1 January 2018, the
global turnover of a business will be relevant for
the purpose of determining whether the relevant threshold of CHF
100'000 p.a. is exceeded. This means that a foreign enterprise
may incur a Swiss VAT liability already for a minor supply in
Switzerland if its
