Important tax changes in Switzerland from January 2025

Important tax changes in Switzerland from January 2025 + tax rate changes

From January 2025, significant tax changes will come into force in Switzerland, which will affect the e-commerce sector in particular. For online retailers who operate in Switzerland or serve customers there, it is crucial to find out about the new regulations in good time and prepare for them. In this blog post, we take a look at the most important tax changes that will be implemented in 2025 and the impact they will have on Swiss e-commerce.

1. Introduction of VAT liability for foreign online retailers

A central issue in Swiss tax law from 2025 is the introduction of a VAT obligation for foreign online retailers who deliver goods to Switzerland. Until now, foreign companies were exempt from value added tax (VAT) if their deliveries were below a certain threshold. However, this regulation will be amended from January 2025.

Foreign online shops that generate an annual turnover of more than 100,000 CHF from sales to consumers in Switzerland must now collect the Swiss value added tax (VAT) of currently 7.7% on their goods and services and transfer it to the Swiss tax authorities. This also applies to providers of digital products and services, such as software, e-books and streaming services.

Key points:

• Foreign companies must register for value added tax in Switzerland.
• The new regulation applies not only to physical products but also to digital services.
• Online retailers must correctly report VAT and submit the tax on time.

2. Adjustment of the VAT rate

Another important aspect of the tax changes concerns the adjustment of VAT rates. From January 2025, Switzerland will have new tax rates, which will have an impact on the entire e-commerce sector. The regular VAT rate will be raised from 7.7% to 8%. This adjustment applies to all goods and services that are not subject to reduced tax rates.

Details of the new tax rates:

• Regular tax rate: 8% (instead of 7.7% so far)
• Reduced tax rate: 2.5% for certain products such as food, medicines and books.
• Special rate: 3.7% for accommodation services (e.g. hotels).

For online retailers, this means that the prices displayed in their online stores may need to be adjusted. These price adjustments require rapid implementation, as all affected products and services must be billed at the new tax rates from January 1, 2025. Merchants should ensure that their systems and payment processes are updated to correctly calculate the new tax rate.

3. Expanded reverse charge procedure for cross-border services

The reverse charge procedure, in which the recipient of the service (and not the provider) owes value added tax, will also be extended in Switzerland from January 2025. For cross-border services between companies (B2B), the service recipient becomes a taxable party in Switzerland.

This means that Swiss companies that use foreign services must pay VAT directly to the Swiss tax authorities instead of having it collected by the foreign provider. This regulation simplifies processing for foreign service providers and at the same time ensures that Switzerland can assert its tax claims directly.

Effects on e-commerce:

• Online retailers who purchase cross-border services from foreign providers (e.g. for web hosting, advertising or software) must ensure that they pay the tax correctly.
• These dealers are also subject to appropriate documentation requirements in order to properly apply the reverse charge procedure.

4. Simplified billing for small business owners

Switzerland is also introducing relief for smaller companies that were previously exempt from VAT liability. From January 2025, the threshold for exemption from VAT liability will be raised to 150,000 CHF. This means that companies with an annual turnover of less than 150,000 CHF are not required to pay VAT as long as they do not exceed this threshold.

This change will particularly benefit small e-commerce companies and start-ups, which will have to do less administrative work as long as they remain within the new threshold.

5. Adjustment of tax liability for digital marketplaces

With the increasing use of online marketplaces such as Amazon, eBay and other platforms, tax responsibility for marketplace operators is also being reregulated. From 2025, marketplace operators in Switzerland must ensure that VAT is paid correctly on the platforms. This means that platform operators may be responsible for transactions between third parties and end users if these transactions exceed certain thresholds.

This regulation applies in particular to marketplaces that offer international sellers from abroad, as marketplace operators are also held responsible for collecting and paying VAT.

Conclusion: What do Swiss e-commerce entrepreneurs need to do now?

The tax changes from January 2025 require thorough preparation from Swiss e-commerce companies. The most important steps that entrepreneurs should now take include:

1. Review of VAT liability: Make sure you understand your tax obligations, particularly if you're doing business across borders.
2. System adjustments: Update your e-commerce platform and accounting systems to correctly apply the new VAT rates.
3. Training and advice: Consult a tax advisor to ensure that you implement all new regulations correctly and do not risk penalties.
4. Price adjustments: Review and adjust your pricing structure to take into account the new tax rate.

The tax changes from January 2025 will have far-reaching effects on the Swiss e-commerce market. Only those who deal with the new regulations at an early stage and adapt their business processes can continue to operate smoothly in international competition and keep track of their tax obligations.

‍

If you have any questions about our blog posts, our repricing software or our consulting solutions, please contact us at:

email: support@metaprice.de

‍Telephone: 0214/33010250Whatsapp: 0163/2202270

About our free test accounts:

‍Free test account for our Amazon Repricer

‍Free test account for our eBay Repricer‍

‍Free test account for our Kaufland Repricer

‍

‍