Switzerland deemed supplier import VAT 2025

Starting January 1, 2025, Switzerland will introduce new VAT regulations targeting electronic platforms such as online marketplaces, APIs, and any interface that facilitates the sale of goods into Switzerland. Currently, non-resident merchants selling low-value consignments to Swiss consumers are responsible for registering, collecting, and remitting VAT if their sales exceed 100,000 CHF annually. However, Switzerland has faced challenges with enforcing compliance, particularly with non-resident or foreign merchants selling on electronic platforms.

Changes in 2025 

To address compliance challenges, electronic platforms with more than 100,000 CHF in annual low-value sales into Switzerland will be designated as deemed suppliers. As deemed suppliers, electronic platforms will be required to register for VAT, collect VAT at checkout on all orders, and act as the importer of record for all consignments, both low and high-value. By placing VAT responsibilities on platforms, Swiss authorities can streamline enforcement and improve collection efficiency, ensuring VAT is consistently applied at the point of sale.

Understand electronic platforms and deemed suppliers 

In Swiss VAT law, an electronic platform is any operator that facilitates cross-border sales through an electronic interface into Switzerland. This includes online marketplaces and platforms such as Amazon, eBay, Etsy, and Zonos, which facilitate transactions electronically.

When an electronic platform meets the specified sales threshold of 100,000 CHF in annual low-value sales into Switzerland, it becomes the deemed supplier of supplies that it facilitates to Swiss customers and is accordingly responsible for VAT collection and remittance on all sales it facilitates to Swiss customers.

Entities required to comply 

• Electronic platforms exceeding 100,000 CHF in annual low-value sales into Switzerland: Platforms that surpass this threshold must register for Swiss VAT, collect VAT on all sales at checkout, and act as the importer of record for all consignments, regardless of individual merchant sales volumes.

• Merchants selling through platforms: If an electronic platform meets the 100,000 CHF threshold, it handles VAT on behalf of its merchants or sellers. However, merchants may still be jointly liable if the platform fails to comply, so including a hold-harmless clause in your agreement is recommended.

• Merchants selling through their own websites: Merchants with more than 100,000 CHF in annual low-value sales into Switzerland on their own website, exclusive of marketplace sales, must continue to register for VAT and remit it on low-value consignments. Sales through an electronic platform are not included in this threshold. VAT on high-value consignments will still be paid at the border, as is currently required.

How the deemed supplier rule works 

Electronic platforms that exceed 100,000 CHF in annual low-value sales into Switzerland are responsible for collecting VAT on both low- and high-value consignments. The CIF (cost, insurance, and freight) value is used to determine whether a consignment qualifies as low or high value.

• Low-value consignments:

  • Defined as:

    • Less than 62 CHF for standard-rated goods (8.1% VAT)
    • Less than 200 CHF for reduced-rated goods (2.6% VAT, such as books or food)

  • Remittance: Platforms act as the importer of record, collect VAT at checkout, and remit quarterly to the Swiss tax authority.

• High-value consignments:

  • Defined as:
    • More than 62 CHF for standard-rated goods
    • More than 200 CHF for reduced-rated goods
  • Remittance: Platforms act as the importer of record, collect VAT at checkout, and pay it at the border.

Noncompliance 

Failure to comply with the new VAT rules can result in penalties such as import bans, destruction of goods at the border, or blacklisting of platforms.

Easy compliance 

Zonos makes compliance simple for electronic platforms by handling:

• Automated VAT collection: Our platform calculates and collects VAT at checkout for both low-value and high-value consignments, applying the correct Swiss VAT rates.

• Import VAT management: As the importer of record for all consignments, Zonos will ensure that all necessary import VAT is properly handled, reducing cash flow impacts through Switzerland’s reverse charge mechanism.

• Deemed supplier: Zonos is registered for VAT in Switzerland, taking over VAT responsibilities for sales facilitated through our platform.

• Prepay VAT on behalf of sellers: Zonos will prepay VAT on both low and high-value consignments at the point of import, ensuring that your customers experience a smooth purchase process without unexpected costs at the border.

Conclusion 

Switzerland’s 2025 VAT changes shift new responsibilities onto platforms and marketplaces but offer the potential for simplified VAT collection for merchants or sellers on those platforms. Zonos provides the tools and solutions to ensure your platform remains compliant while offering a smooth customer experience.