Introduction of annual VAT accounting:
From 1 January 2025, companies with an annual turnover of up to CHF 5,005,000 will be able to submit an annual VAT return on request. This innovation represents an administrative simplification compared to the previous quarterly or semi-annual settlement.
In order to be able to settle annually for the year 2025 (submission of the annual statement by the end of February of the following year), the application must be submitted by 28 February 2025 at the latest (application form available in the ePortal from January 2025). The prerequisite for retaining the annual statement is the timely and complete submission and settlement of all VAT declarations. For the time being, there will be no changes to the declaration type; corrections can also be submitted for annual returns and deadline extensions can be requested.
The annual statement is linked to the obligation to pay instalments (4 times a year; the usual due dates apply; at least CHF 500 per instalment), which are determined by the Federal Tax Administration (FTA). However, the FTA can revoke the annual statement if the taxpayer exceeds the turnover limit for three consecutive tax periods or if the statement is not submitted and paid on time. The annual statement will also be revoked if the instalments are reduced too much. The instalments may not be less than 50% of the total tax claim in the case of the effective and flat-rate tax methods and 35% in the case of the net tax rate method.
Net tax rate method:
The net tax rate method (SSS method), a simplified VAT accounting method for SMEs, has been comprehensively revised. The number of applicable SSSs is no longer limited to two SSSs per taxable person. Any activity that accounts for more than 10% of total turnover must be accounted for using the corresponding SSS method. Once the new SSS have been identified, they must be confirmed by the FTA. Foreign taxpayers may no longer use this accounting method in future.
Ein Wechsel von der effektiven Methode zur SSS-Methode erfordert die Rückerstattung der zuvor abgezogenen Vorsteuer an die ESTV, basierend auf dem Zeitwert der betroffenen Gegenstände und Dienstleistungen zum Zeitpunkt des Wechsels (Eigenverbrauch). Umgekehrt kann bei einem Wechsel von der SSS-Methode zur effektiven Abrechnungsmethode die MWST, die auf dem Zeitwert der Gegenstände und Dienstleistungen zum Zeitpunkt des Wechsels lastet, in der ersten Abrechnungsperiode nach dem Wechsel als Vorsteuer abgezogen werden (Einlageentsteuerung).
A change from the effective method to the SSS method requires the refund of previously deducted input VAT to the FTA, based on the current value of the goods and services concerned at the time of the change (own use). Conversely, when changing from the SSS method to the effective accounting method, the VAT charged on the current value of the goods and services at the time of the change can be deducted as input tax in the first accounting period after the change (contribution taxation).These changes make the SSS method less attractive and at the same time more complex to apply. Under certain circumstances, it may be advisable to consider switching to the effective method.
Tax liability for online platforms:
A significant change also affects the tax liability for online platforms. In future, platform operators will be deemed to be taxable suppliers if they enable sellers to offer physical supplies via their platform. From a tax law perspective, this results in two supplies: A supply by the seller to the platform operators and a supply by the platform operators to the buyer. The first supply is tax-exempt and must be declared in the VAT statement under item 220 (tax-exempt supplies). However, it is possible to tax this first supply voluntarily.
Further changes:
The partial revision includes further changes in the areas of travel agencies, subsidies and public authorities, event organisations (new recipient location principle), tax representation for foreign companies, flat-rate tax method, medical treatment services, investment foundations, trading in emission rights, security and joint liability in the case of ‘serial bankruptcies’ and the exclusive use of the electronic portal for registration and declarations. In order to make specific implementation measures and recommendations, it will be necessary to await the practical publications currently being prepared by the FTA (VAT Info).