VAT'S IMPORTANT - NEWSLETTER 2023 - 04
NEWSLETTER 2023 - 04
Reminder - don't forget
New Swiss VAT rates as of January 1, 2024
We would like to remind you that new VAT rates will apply in Switzerland as of January 1, 2024. They will be increased as follows:
· VAT standard rate: New 8.1%
· Special rate for accommodation: New 3.8%
· Reduced rate: New 2.6%
In this context, questions naturally arise regarding invoicing and settlement with the Swiss Federal Tax Authority (SFTA). In the following, we would like to address some typical key questions:
GENERAL RULE
The applicable tax rate is determined neither by the date of invoicing nor by the date of payment, but the date of performance of the supply. Supplies rendered up to December 31, 2023 are subject to the previous tax rates. Supplies rendered on or after January 1, 2024 are subject to the new tax rates.
PARTIAL PAYMENTS
Partial payments for supplies rendered up to December 31, 2023 must be invoiced at the previous tax rates and settled with the SFTA. Partial payments for supplies rendered on or after January 1, 2024, must be invoiced at the new tax rates and settled with the SFTA.
PERIODIC SERVICES
As a rule, such supplies are to be paid in advance. If such a supply extends beyond the time of the tax rate increase, the payment must generally be apportioned pro rata temporis between the previous and the new tax rate.
FEE REDUCTIONS
Reductions in remuneration for supplies rendered prior to January 1, 2024 must be adjusted at the previous tax rate.
CREDIT NOTES
Credit notes for supplies made prior to January 1, 2024, must be treated as reductions in charges at the previous tax rates.
CREDIT NOTES
Returns of items must be treated as reductions in consideration at the tax rates in effect at the time the supply was performed.
DECLARATION WITH THE SFTA
In the q3 2023 VAT return supplies can be declared for the first time at both the previous and the new tax rates.
If you have any questions, please do not hesitate to contact us.
Your terraVAT team is happy to assist.
With best regards
Your terraVAT Team
Sabrina Frey Florian Hanslik
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