Online platforms

New VAT regulations for online platforms have been in effect in Switzerland since January 1, 2025. The objective of this reform is to eliminate competitive distortions between domestic and foreign providers.

Under the new rules, the VAT obligation is no longer the sole responsibility of the seller. Platform operators are now liable if they facilitate sales to Swiss consumers. This applies to large marketplaces such as Amazon, eBay or Temu, as well as to smaller platforms, including portals for direct agricultural sales or courier services, provided they exceed the applicable turnover threshold in Switzerland.

In practice, this means the platform is now considered a service provider and is liable for VAT on the entire turnover generated through it, even if goods are shipped directly to customers in Switzerland from abroad. VAT must be paid in Switzerland regardless of whether the seller is based in Switzerland or not.

For consumers, the change is expected to bring more price transparency and fewer unexpected charges upon delivery, as VAT will already be included in the purchase price. For platform operators, however, this means increased obligations in terms of accurate VAT reporting, invoicing and monitoring of sales.

Smaller retailers who were previously able to deliver VAT-free through platforms will also be affected, as these platforms are now subject to VAT.

Companies selling to Switzerland via online platforms, or operating such platforms themselves, should carefully review the new requirements and adapt their processes where necessary. The Swiss Federal Tax Administration (FTA) provides further guidance and support in its recently published Branchen Info 27.

Conclusion

If you believe your business could be affected by these changes to the VAT regulations for online platforms, you are strongly advised to consult your tax advisor or fiduciary.