The VAT Revision - Part 1: Why are these changes so important?

The value-added tax (VAT) in Switzerland is undergoing a complete revision. The first part of the revision has been in force since 2010. Now, the second part will follow as of January 1, 2018. This leads to significant changes in some areas. According to the Federal Council, 30,000 new VAT subjects are expected. Findea explains in a four-part series of articles how the VAT revision came about and what the main changes are. This first article presents what this VAT revision is about.

Why is a VAT revision necessary?

‍Since VAT is one of the more complex tax categories, this revision aims to simplify it. The goal was primarily to assist smaller companies. This is in two respects:

1. There should be administrative relief. This was realized with the first part of the VAT revision, which has been in force since 2010.
2. The VAT technical disadvantages of Swiss companies compared to their foreign competitors should be eliminated. This second part will come into force on January 1, 2018.

‍Which areas are affected

‍In addition to eliminating the VAT disadvantages for Swiss companies, numerous other changes will take place. These include the public sector (Part 3) and the margin scheme taxation for works of art, collectors' items, and antiques (Part 4).

This is what makes the VAT revision so important. Due to the numerous changes, a lot will change, especially for foreign companies. Anyone unsure about the impact of the revision on them would do well to get information early.

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