At its meeting on 24 September 2021, the Federal Council adopted the dispatch on the amendment of the Value Added Tax Act.
The following innovations are envisaged:
- Online mail order platforms are now considered to be service providers for the deliveries they have facilitated and are thus subject to VAT (incl. enforcement mechanisms).
- Exemption of foreign tour operators from tax liability if they organise tours to Switzerland.
- Reduced tax rate for feminine hygiene products.
- It is also introduced that a use of funds designated as a subsidy by a community is also considered a subsidy for VAT purposes.
- New tax exemption for active participation in cultural events. This also applies to services of coordinated care in connection with curative treatments.
- In future, SMEs will be able to voluntarily settle VAT on an annual basis.
- Possibility for the FTA to exempt foreign companies from the obligation to appoint a tax representative in Switzerland if fulfilment of the procedural obligations is ensured in another way.
- General purchase tax liability for the transfer of emission rights, certificates and attestations for emission reductions, guarantees of origin for electricity and similar rights.
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