Do not forget: Lower VAT rate as of 1.1.2018
The vote on September 24, 2017, on the reform of the pension system also has consequences on a "side stage": namely, a lower VAT rate will apply as of January 1, 2018.
On Sunday, September 24, 2017, Swiss voters rejected the "Retirement Provision 2020" bill at the ballot box. As a result, VAT rates will fall from January 1, 2018, as the additional financing of the IV through VAT by 0.4 VAT percentage points will expire at the end of 2017. At the same time, as of January 1, 2018, the VAT rates will increase by 0.1 percentage points due to the financing of the expansion of the railroad infrastructure (FABI). For this reason, the VAT rates will change as follows from 1 January 2018:
- The normal VAT rate of previously 8 % is now 7.7 %
- The special rate of 3.8% will be reduced to 3.7 %.
- Reduced rate: remains as before at 2.5%
The detailed effect of the change in tax rates can be seen from the VAT Info 19 Tax rate change as of January 1, 2018 take out. In any case, it is advisable to settle as much as possible as of 31.12.2017 still with the VAT rate valid now in order to avoid costly settlements with the new VAT rates in the next year.
In addition, the partial revision of the Swiss VAT Act will come into force on January 1, 2018. While this will not bring any significant changes for domestic companies, it will have consequences above all for the tax liability of foreign companies. For example, the tax liability of a foreign company that makes deliveries in Switzerland or provides telecommunications and electronic services to end consumers is no longer determined solely by its turnover in Switzerland, but by its worldwide turnover. If a company achieves a turnover of less than CHF 100,000 with such services in Switzerland but at least CHF 100,000 worldwide, it will now be liable for VAT from the first franc of turnover in Switzerland. On the other hand, low-value shipments will continue to be tax-exempt upon importation. However, under the new VAT Act, (online) traders who generate annual sales of more than CHF 100,000 in Switzerland with such shipments will be subject to VAT. This means that they must invoice these deliveries with Swiss VAT.
