Changes to Swiss mail order regulation 2019

19 december, 2018

The Swiss Federal Tax Administration (FTA) has introduced changes to the Swiss VAT regulations.

The reform is intended to eliminate VAT-related competitive disadvantages for Swiss companies. One important change affects all e-commerce companies sending goods to Switzerland that have not registered in Switzerland with their own Swiss VAT number yet.

As of 1 January 2019, If a mail-order company generates a turnover from small consignments (import tax free) of a minimum of 100,000 CHF per year, these consignments will be considered domestic deliveries and the company will be liable for the tax in Switzerland. The tax liability arises when the qualifying turnover is reached.

Therefore, all companies meeting these criteria will have to register for a VAT number in Switzerland and apply Swiss VAT to the products they sell to Switzerland, at the time of sale.

Take a look at our infographic below to know your next steps.