Unternavigation

Electronic platforms

On 9 July 2024, the FTA published its preliminary draft of the VAT practice on platform taxation, which will come into force on 1 January 2025. The FTA has received comments on this preliminary draft from the parties concerned. The draft of the corresponding VAT sector info 27, "Electronic platforms", is thus still being revised. The following points should be noted:

If a platform operator facilitates a supply of goods with the aid of an electronic platform by bringing a seller together with a purchaser to conclude a contract on the platform, the platform operator is deemed to be the supplier towards the buyer (Art. 20a of the VAT Act). This means that there are two supplies from a VAT perspective:

A first supply is considered to be between the seller of the goods and the platform operator;
A second supply is considered to be between the platform operator and the buyer of the goods.

The first supply between the seller and the platform operator is exempt from tax (Art. 23 para. 2 no. 13 of the VAT Act). In the VAT return, the supply has to be declared under item 220 (supplies exempt from tax).
- It is possible, with the agreement of the platform operator, to voluntarily tax the first supply to the platform operator (Art. 43a of the VAT Ordinance).
- Companies that sell their goods via platforms and that report using the net tax rate or flat tax rate method may change to the effective reporting method provided the conditions according to Article 81 of the VAT Ordinance are met. If the conditions are met, reporting on an annual basis may also be chosen (Art. 35a of the VAT Act; Annual reporting).
If the goods sold are imported into Swiss territory, the place of the first supply from the seller to the platform operator is abroad. Such supplies abroad are to be declared in the VAT return of the taxable seller under item 221 (supplies abroad).

Platform operators potentially taxable in accordance with Article 20a VAT Act may be domiciled in Switzerland as well as abroad.
If the seller of the goods issues an invoice to the buyer that includes VAT, then the platform operator must be mentioned on the invoice and it must be indicated that the transaction is subject to Article 20a of the VAT Act (e.g. "VAT at a rate of 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [name and VAT number of the platform operator]").
Contrary to what was stated in the preliminary draft of 9 July 2024 on platform taxation, platform operators will not be required to automatically provide information as of 1 January 2025 (concerns section 7 of the preliminary draft). This means that platform operators will have to provide information only upon request of the FTA.
Contrary to what was stated in the preliminary draft of 9 July 2024 on platform taxation, a reconciliation between the sales declared and taxed by the platform and the import tax declared and deducted by the platform will not be required for the time being when goods are imported (concerns section 3.3.2 of the preliminary draft).

In the meantime, the draft of the VAT practice electronic platforms has been published (German and French version). The deadline for comments is December 10, 2024.