New Tax Regulation for CH Platforms: What You Need to Know
The Swiss Federal Tax Administration is modernizing its VAT system to keep pace with the growth of online commerce. With an increasing volume of goods sold via third-party platforms, the tax system must evolve to ensure efficient VAT collection. This has led to the introduction of the new tax Regulation for CH Platforms, which holds platform operators accountable for VAT, not just the individual sellers on the platform.
This change aligns Switzerland with other countries, such as Germany and the UK, that already have similar models in place. This shift ensures that VAT compliance is more centralized and easier to enforce, which ultimately benefits the Swiss tax system.
Quick Take:
- New rules shift VAT responsibility to platform operators
- Applies to both Swiss and foreign e-commerce sellers
- The tax Regulation for CH Platforms introduces clear criteria for who must register
- Non-compliance can lead to fines or business restrictions
- Planning can save time and trouble
What’s Changing and Why It Matters
The Swiss Federal Tax Administration aims to simplify and standardize the collection of VAT. As more goods are sold through third-party platforms, the tax system needs to catch up. That’s why Switzerland has introduced a tax Regulation for CH Platforms, to hold platforms responsible for tax, not just individual sellers.
This approach isn’t new. Other countries, like Germany and the UK, already follow a similar model. Now, Switzerland is moving in the same direction.
Who It Affects
If you operate or support a digital platform that facilitates the sale of goods into Switzerland, this matters. Even if your business isn’t based in Switzerland, you may still need to register for Swiss VAT.
This applies to:
- Marketplaces and sales platforms
- Fulfillment and logistics providers
- Sellers using Swiss-based platforms
If your platform is part of the sales, payment, or delivery process, you may be considered the “deemed supplier” under the new rules. A ‘deemed supplier’ is a concept where the platform operator is treated as the seller for VAT purposes, even if they are not the actual seller of the goods. This means you would be responsible for the VAT on the sale.
What You Need to Do
Under the new law, you may be required to:
- Register with Swiss tax authorities
- Collect and pay VAT
- Appoint a local tax representative
- Submit regular VAT filings
And this applies whether or not you physically handle the goods. Being part of the transaction flow is enough.
What Happens If You Ignore It
If your business fails to register or misreports VAT, the consequences can be severe. You may face penalties or lose access to the Swiss market. And because these rules apply to both local and international businesses, no one is exempt.
How to Prepare
Start by checking how your platform works. Do you process orders, collect payments, or manage delivery into Switzerland? If so, you fall under the new rules.
To understand the entire picture, refer to the official guidance on the tax Regulation for CH Platforms. It covers the key changes and steps to take.
Summary
This reform goes beyond a mere technical update; it fundamentally alters how online commerce is conducted in Switzerland. By placing VAT responsibility on platform operators, Switzerland aims to streamline and modernize its tax system. If you’re part of the digital marketplace or e-commerce ecosystem, now is the time to familiarize yourself with these changes. The best course of action is to proactively assess your platform’s role in the transaction process and ensure that you are fully compliant before the regulations take effect. Staying ahead of these changes will help you avoid penalties and business interruptions while maintaining smooth operations in Switzerland’s competitive market.