Swiss VAT 2025

What online retailers need to consider

New VAT rules have been in effect in Switzerland since 1 January 2025 – and many retailers are asking themselves: Do I still have to declare and pay the tax myself? What applies to my platform sales? And what does a legally compliant setup for my shop look like?

This article explains the changes brought by platform taxation, outlining what retailers need to consider and how exporto can help them streamline their processes.

An overview of the most important changes in the Swiss Value Added Tax Act 2025

From 1 January 2025, a revised version of the Value Added Tax Act (MWSTG) will apply in Switzerland, with VAT adapting to digitalisation and internationalisation. The most significant amendment is the introduction of platform taxation,

which shifts responsibility for VAT on cross-border sales from individual traders to marketplaces. Reporting obligations and sanction mechanisms will also be more clearly regulated.

The revision has several objectives:

• Ensuring tax fairness between domestic and foreign market participants 
• Creating more transparency in international online trade
• Minimising tax losses, for example through unregistered traders or incorrectly declared small consignments
• Adapting to international developments, such as similar regulations in the United Kingdom, Australia or Norway
• Promoting digitalisation

What exactly is changing?

From 2025, the new regulation will legally require marketplaces and platforms, such as Zalando, Amazon and Galaxus, to pay VAT directly to the Federal Tax Administration (FTA). Until now, retailers have been responsible for paying this tax.

• The platforms themselves are considered service providers for sales made via their systems.
• They will therefore generally be liable for VAT, and will need to calculate, declare and pay VAT on all sales made via their systems to end customers in Switzerland.
• Consequently, retailers will only receive the net invoice amount.
  
  

Additional requirements also apply:

• Information obligation for platforms: Upon request by the FTA, all platforms must provide detailed information on what was sold, by whom and when, including transaction details and merchant data. This obligation also applies to platforms through which digital services are provided.
• Online obligation: VAT-liable companies, whether selling directly or via a platform, must settle VAT online via ePortal from 1 January 2025 onwards. Paper submissions will no longer be possible.

More consistent action in the event of violations

Another new development is that the FTA may take significantly firmer action if platforms fail to fulfil their obligations or wrongfully fail to register as taxable companies.

This could include import bans on affected shipments, and in extreme cases, the destruction of goods, if violations occur repeatedly and no remedial action is taken. Additionally, the FTA may publish the names of companies it has fined to protect customers.

Platform taxation from 2025: What will change for marketplace sales

Let's now take a closer look at platform taxation. We already know that from 2025, platforms will have to declare VAT on sales to Switzerland directly to the FTA, pay it and assume tax responsibility for all transactions with Swiss end customers.

For the purposes of platform taxation, who is considered a platform?

Article 20a of the VAT Act provides the definition:

Anyone who facilitates a delivery [...] by bringing sellers and buyers together on an electronic platform to conclude a contract is considered a service provider to the buyer.

This means that a platform is considered a service provider and is subject to VAT if it technically facilitates the purchase between a retailer and a customer – for example, by managing the conclusion of the contract via its website or app.

Providers who merely play a supporting role and meet one or more of the following conditions are not considered platforms:

• No involvement in the ordering process (either directly or indirectly)
• No revenue-related share of the transaction
• Pure payment processing without influence on the contract
• Mere advertising or promotional space
• Pure redirection to other platforms

In practice, this means the following, for example:

• Platforms such as Zalando, Amazon and Galaxus are affected because they facilitate the conclusion of contracts between sellers and buyers and control order processing.
• However, platforms that are purely promotional, informational, or act as comparison services are not considered taxable platforms. This includes pure advertising portals and payment services such as PayPal.

What should retailers bear in mind?

Traders who start selling to Switzerland exclusively via platforms for the first time in 2025 will generally no longer be required to register for VAT in Switzerland themselves. While they will no longer be required to declare and pay the tax themselves, some points remain relevant:

• Separate revenue accounts for each platform: In financial accounting, a separate revenue account should be set up for each platform in order to allocate sales correctly and provide them to the fiscal representative at transaction level as usual.
• Platform sales are not subject to VAT from the retailer's point of view: Sales are generally not taxable in Switzerland. Import tax remains in place – how it is treated depends on who acts as the importer.
• Import tax relevant depending on the importer: If the platform declares the delivery to customs and is therefore considered the importer, it generally owes and pays the import tax, but can claim this as input tax in its tax return – the import tax charge is therefore neutral. If, by agreement with the platform, traders act as importers themselves by means of a declaration of subordination abroad approved by the FTA, they are liable for the import tax. No value added tax is payable on the fictitious delivery between the trader and the platform, regardless of who the importer is. This often leads to aninput tax surplus, which can be claimed correctly.
• Subsidiary liability remains in place: If a platform does not fulfil its tax obligations (for example, because it is not registered or does not pay the correct Swiss VAT rates), the tax administration can fall back on the trader.

In short, the platform is liable for VAT, but traders must remain fully aware of their setup and ensure that it is accurately documented.

Special case of registered traders: when the platform is not solely liable for tax

In certain cases, a trader may remain partially involved in tax processing despite selling via a platform – for example, if they are registered for VAT in Switzerland and have an approved ‘declaration of foreign status’. However, even then, the platform usually remains liable for tax on part of the transaction.

According to the FTA's logic, platform sales legally constitute a fictitious double delivery:

1. From the trader to the platform
2. From the platform to the end customer in Switzerland

For delivery 1 ‘Dealer → Platform’, the following applies: As a rule, the platform is considered the importer of the delivery. In this case, the place of delivery is abroad and the delivery is not taxable in Switzerland. If, on the other hand, the trader acts as the importer by means of an approved declaration of subordination abroad, the delivery to the platform is considered tax-exempt in Switzerland. However, in this case, the trader is responsible for paying the import tax. The prerequisite is that the trader has a service overview from the platform showing that it has correctly declared the delivery to the FTA as subject to VAT. Therefore, this first delivery to Switzerland is not subject to VAT, regardless of who acts as the importer. 

The following applies to delivery 2 ‘platform → end customer’: Regardless of whether the retailer or the platform imports the item, the platform remains liable for VAT on the delivery to the end customer.

For many retailers from Germany and the EU, the model of registering for VAT and submitting a declaration of subordination in Switzerland, regardless of platform sales, has proven successful for several reasons:

• More control: As an importer, you can manage customs, shipping and delivery yourself, regardless of how the platform operates or where it is registered.
• Platform sales: Some platforms already include a clause in their contracts stating that retailers must act as importers for cross-border deliveries to Switzerland. This requires the submission of a foreign declaration of compliance.
• Tax credit: As an importer, you can claim the import tax you pay as input tax in your Swiss VAT return, which will be offset against any tax liability.

• Consistent setup for mixed models: If you sell via marketplaces and your own shop, you benefit from a consistent setup for imports, provided you have a valid foreign declaration of submission. Important: Even with a uniform setup, sales from platforms must be documented and posted separately.

• Better customer experience: A consistent shipping and tax concept means faster delivery, clearly communicated prices (including tax) and fewer queries, providing a better shopping experience for Swiss end customers.

At exporto, we implement this exact setup for our customers – including registration, foreign declaration of subordination, customs clearance, tax returns and re-customs clearance (more on this later).

What applies to retailers with their own shops?

Anyone who sells directly to Swiss end customers via their own online shop rather than via platforms may become liable for VAT in Switzerland under certain conditions:

Since 2019, foreign retailers have been required to register for VAT in Switzerland if they generate at least CHF 100,000 in sales per year in Switzerland with small consignments. Small consignments are goods deliveries where the import tax does not exceed CHF 5 – in these cases, no import tax is levied at the border upon import. This will remain the case from 2025 onwards.

Tax liability arises if the turnover limit of CHF 100,000 is exceeded. Traders should therefore monitor this limit closely. Exceeding it means that traders

• register with the FTA on time;
• submit VAT returns regularly, and
• issue their invoices in accordance with Swiss requirements, including VAT identification in CHF and the correct Swiss tax ID.

Failure to register or errors in the registration process can result in import delays, queries from the authorities, or even an import ban.

Import tax and the role of the declaration of subordination

Import tax is also payable. If the trader acts as the importer, this can be claimed as input tax. This requires a foreign declaration of subordination. Although it is not legally binding, it is necessary in order to be recognised as the importer; otherwise, the Swiss end customer is considered the importer.

Without a foreign declaration of submission, the following problems may arise:

• In addition to VAT on the invoice, the end customer also pays the import tax that is levied on imports into Switzerland as standard.
• The double tax burden makes the retailer less attractive to end customers, which can lead to abandoned purchases.

If the retailer applies the foreign declaration of submission, the end customer only pays the standard rate of VAT on the invoice. The retailer pays the import tax and can claim it back as input tax in their VAT return. This ensures that turnover is not taxed twice.

Misunderstandings surrounding VAT in Switzerland from 2025 onwards – and what really applies

The new regulations are still causing uncertainty among many retailers. Errors often arise, particularly in mixed models – i.e. when selling via platforms and the retailer's own shop:

• ‘The platform takes care of everything – I'm out’ – not true: From 2025, marketplaces such as Amazon and Galaxus will pay VAT on sales to Swiss end customers, but retailers will remain responsible for import tax (if they act as importers), separate revenue accounts and, in the event of violations by the platform, also for VAT on a subsidiary basis. It must be clearly agreed who acts as the importer.
• ‘Import tax automatically means VAT liability’ – no: Import tax is generally payable on every import, but is not levied on small consignments. Only when the annual turnover from such small consignments exceeds CHF 100,000 does the obligation to register for VAT arise – regardless of whether import tax has actually been paid.
• ‘Mixed models must be treated uniformly for tax purposes’ – incorrect: Anyone who sells via platforms and their own shop must consider both separately: VAT on platform sales is always payable by the platform, while import tax depends on the importer. Shops are subject to their own thresholds and obligations – they require separate tax treatment.

Typical scenarios at a glance

How exporto supports companies in Swiss e-commerce

The new requirements are complex, involving platform taxation, import processes, accounting and tax registration. It is therefore worth relying on a partner who can automate these processes.

This is where exporto comes in:

• Fiscal representation & VAT processing: exporto handles VAT representation in Switzerland – including registration with the FTA, submission of the foreign declaration of submission, ongoing VAT returns and annual reconciliation.
• Delivery & last mile: Thanks to connections with local carriers such as Swiss Post, parcels arrive faster and remain transparently traceable for your end customers.
• Returns with re-customs clearance: Returns are processed in our own returns centres in Switzerland – including re-customs clearance and accounting documentation in just four to five working days.
• Seamless integration: exporto can also be flexibly connected to existing ERP systems, shops and shipping processes.

Conclusion and recommendations for dealing with Swiss VAT

Platform taxation reduces the administrative burden associated with VAT – but makes clean import and accounting processes all the more important. Anyone who also sells through their own shop must keep both sales channels separate for tax and accounting purposes.

What online retailers should do now: 

• Analyse sales channels: Do you sell only via platforms – or also in your own shop? Is your setup clearly defined?
• Check import and tax processes: Who acts as the importer? Is your accounting system prepared for input tax surpluses? Are sales from the platform and shop clearly separate? And – if you sell via multiple platforms – are the sales from the individual platforms also clearly separated?
• Secure fiscal representation and reporting: Are the data flows correct? Can you provide traceable evidence of your transactions at the individual document level?

With exporto, you can master the transition efficiently and in compliance with the law – and focus fully on your growth in the Swiss market. We support you with an integrated solution for customs, tax, logistics and reporting.

Please note: This article is for general information purposes only, does not replace tax advice and does not claim to be complete or accurate. For individual questions, please contact your tax advisor or exporto directly.

This article was written in collaboration with our VAT specialist Lara Wienbrauck.