Switzerland – Federal Council: Consultation on Deemed Supplier Rules for Digital Platforms 

During the meeting held on December 5, 2025, the Federal Council sent the amendments to the VAT Act for open consultation. These amendments primarily focus on changes to tax principles for taxable persons in the digital economy and on modifying the tax rules currently used for mixed supplies. 

The consultation period lasts until March 19, 2026. 

Deemed Supplier Rules 

It has been a year since the introduction of the deemed supplier rules for e-commerce marketplaces. From January 1, 2025, marketplace operators are accountable for VAT when the third-party suppliers fail to do so, and when the conditions are met. 

The parliamentary proposal to amend VAT rules for the taxation of digital platform operators is closely related to the deemed supplier rules previously adopted for the supply of goods through e-commerce marketplaces. The principal parameter used to assess the potential to extend the deemed supplier rules, also to digital platform operators, is based on the results of the reform that extended VAT collection liability to e-commerce marketplaces. 

The extension of the deemed supplier rules for non-resident digital platforms should cover operators that facilitate the supply of apps, software, video games, music, video streaming, and other services. However, the proposal doesn’t cover the deemed supplier liability for the platform that facilitates accommodation or ride-sharing services. 

Mixed Supply of Services 

This proposal aims to change the taxation rules when the transaction involves multiple services that are interdependently ordered and provided to the recipient. An example of combined services is often in the tourism industry. The combination of accommodation services, ordered with booked meals, with wellness services, and the likes have a special set of rules. 

The present rules permit that, for VAT purposes, the services can be treated uniformly based on the predominant service. The present framework permits that, if the predominant service covers more than 70% of the taxable amount, the rate of that service (reduced rate) can be applied to the entire transaction. 

The proposed amendment looks to reduce the % of the predominant service from 70% to 55%. 

By spring 2026, we can expect the final results on the proposed amendments.