Swiss VAT is getting an update!
Wo kann man sparen? Welche Abzüge sind in der Schweiz möglich?
On 1 January 2025, amendments to the VAT Ordinance and the VAT Act will come into force. What sounds like dry facts will, in fact, bring some interesting changes – especially for companies that work with the balance or flat-rate tax method.
In this informative overview, we explain exactly what this means and why you should take a look at the new rules now:
What will change as of January 2025?
In August 2024, the Federal Council gave the go-ahead for the partial revision of the VAT Ordinance. While the changes to the law only affect a minority of taxpayers, the changes to the ordinance are more relevant – especially for companies that work with net tax rates. Here is an overview:
1. New net tax rates for 15% of industries
Your sector could be affected. But don’t worry – the new rates are ultimately designed to make accounting simpler and fairer.
2. More flexibility for multisectors
Companies operating in more than one sector will be allowed to apply more than two net tax rates. No more guesswork as to which rate is the most favourable. Each sector will simply receive the appropriate rate – logically and efficiently.
3. Less incentive for “tax splitting”
Input tax corrections make frequent switching between the effective method and net tax rates less attractive.
The aim is to put tax optimisation on the back burner and actually reduce the administrative burden.
Portal obligation: the future is digital
It will take a while, but from 2027, electronic filing of VAT returns will be mandatory – at least for those using the balance or flat-rate tax method and group taxation.
If you have been using paper forms, you should familiarise yourself with the portal as soon as possible.
Why act now?
Even though the changes do not come into force until 2025, it is worth considering whether and how your business will be affected.
Adjustments may be necessary, particularly in relation to net tax rates.
Our tip: Seek advice in good time to ensure a smooth start to the new tax year and simply book a personal consultation with Hanna Treuhand via the contact button.
The bottom line: Less red tape and (hopefully) more clarity
At first glance, the new rules may sound like extra work, but they have a clear objective: to simplify tax procedures.
With smart preparation and good fiduciary advice, the new year won’t be so bad from a tax perspective. We are here to help.
Do you have any questions or would you like to discuss the adjustments for your company? Get in touch – we’ll keep an eye on things for you!