Switzerland introduced numerous significant changes to its value-added tax rules on January 1, including measures aimed at leveling the playing field for domestic businesses in competition with overseas, online retailers.
Under the changes, a company’s global turnover will now be taken into account when calculating its liability to VAT. Companies with a global turnover of at least CHF100,000 will be liable to VAT from the first franc of turnover in Switzerland.
Before the change, a foreign company providing services in Switzerland did not have to pay VAT on Swiss turnover up to a CHF100,000 (USD103,726) threshold. This led to competitive disadvantages for Swiss businesses, especially in the border regions.