Switzerland – Taxation of the E-Commerce Marketplaces 2025

Swiss authorities have partially revised the Swiss VAT law to decrease the levels of the national VAT gap caused by the non-compliance of foreign e-commerce suppliers. One of the most significant points of this legislative change is modifying the previously adopted framework concerning the indirect tax rules for the e-commerce marketplaces.  

In 2019, Switzerland introduced the e-commerce regulation, aiming to reduce, ideally eliminate, the unfair competition between local retailers and online suppliers from foreign countries. The introduction of the mandatory registration of foreign online sellers of low-value consignments after reaching a threshold of CHF 100 000 should put aside the disadvantages that existed as a consequence of non-existent, specifically developed tax rules for the non-resident e-commerce sellers. 

The adoption of the e-commerce regulation has produced good results, but it could have been better, as data shows. On the other hand, the platform economy has been rapidly extending its influence in the country, and the amount of VAT not collected by Swiss tax authorities has been continuously increasing.

The government, guided by the willingness to equalize the playing field between local retailers and foreign online sellers, has decided to extend the mandatory VAT registration duty to the e-commerce marketplace operators. 

The idea for introducing the deemed supplier concept for the e-commerce marketplaces has been developed following the EU model for deemed suppliers for online marketplaces concerning the imports of low-value goods. 

Timeline 

The adopted amendments to the VAT Law shall come into force on January 1, 2025. 

E-Commerce Marketplace Taxation 

Impact of New Measures 

Following the national customs law, the import VAT isn’t imposed on low-value goods. Low-value goods (shipped in a consignment) are shipments whose customs value is under CHF 62 when the standard VAT rate applies or CHF 200 when a reduced rate is applied.  

Practically, these import consignments are free of import VAT.  Adoption of the e-commerce regulation in 2019 introduced a mandatory VAT registration for foreign online suppliers of low-value consignments if their turnover from these supplies in the country surpasses the threshold of CHF 100 000. 

Starting January 1, 2025, e-commerce marketplace operators will be responsible for registering for Swiss VAT if they facilitate the supply of low-value consignments with an annual value above CHF 100,000. 

How will the deemed supplier model function? 

Practically speaking, the registered platform operator will automatically (if not arranged differently per contract) become a deemed supplier for all supplies concerning low-value consignments facilitated through the platform to Swiss consumers. 

The platform operator will be responsible for all VAT compliance duties towards Swiss tax authorities. Online merchants registered for VAT can deregister from local VAT and transfer the VAT responsibility to a deemed supplier for these transactions. 

However, it should be noted that the revised Swiss VAT law indicates different situations when the platform operator isn’t collecting tax (when obliged), and the merchant will be held jointly responsible. 

The latest amendments to the VAT law concerning the rules for the digital economy have revised the taxation framework for foreign online suppliers and digital platform operators selling low-value consignments to local customers.  

From the first day of 2025, registered digital platform operators will be treated as deemed suppliers for the supplies, facilitated via their marketplace, to customers residing in Switzerland. 

Introducing the concept of the deemed supplier for digital platforms will mandate new or additional VAT compliance responsibilities for foreign online suppliers.