Overview of changes
No, for once, apart from monthly hygiene products, no VAT rate will change. Two major changes that will come into force from 2025 are very sector-specific. The taxation of e-commerce platforms will be adjusted and services provided by travel agencies and tour operators will now be included in the catalog of exempt services under Art. 21 of the VAT Act, which may result in an input tax correction.
Please note: the changes to e-commerce platforms may also affect customers, at least indirectly. The platforms must now register with VAT authorities. Effective administrative measures will be introduced to ensure that platforms register. If a platform does not register, in rare cases the ordered products will be destroyed without compensation. So if you are not sure whether the platform is complying with the new rules when ordering products, it is worth taking a look at the blacklist published by the FTA.
Other changes concern definitions of location, including the place where a teaching unit is deemed to have been provided for VAT purposes if it is also available online.
In the catalogue of exempt services in accordance with Art. 21 para. 2 of the VAT Act, in addition to travel agency services, some adjustments have also been made in the area of medical treatments and cultural events in order to broaden their scope of application.
However, the most relevant changes for SMEs are probably the now mandatory electronic filing of VAT reports and the option of annual invoicing for companies that do not exceed the size criteria for net tax rates.
However, we only recommend the option of an annual statement to a very limited extent in very simple cases. On the one hand, no liquidity can be saved in this way, as the instalments for the expected tax burden are still made quarterly, and on the other hand, there is no change to the accounting requirements or the necessary supporting documents. If the accounting is only done once a year, there is an increased risk that the receipts are no longer available and therefore the basis for a well-founded accounting is missing.
Conclusion
If you have reason to believe that the changes as of 1 January 2025 could be relevant for you and would like to find out more, actively approach your trustee or tax advisor.
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