Swiss e-services tax
Under the new Swiss rules, a service qualifies as an e-service if it meets the following criteria:
- The service is provided via the Internet or any other electronic network;
- The service is provided automatically with minimal human intervention from the supplier;
- Inability to provide services without information technology.
The provision of these services to a customer (commercial or non-commercial) not registered for VAT purposes, but registered or resident in Switzerland, may trigger an obligation to register VAT in Switzerland for the (foreign) service provider. In addition, after such a VAT registration, the “principle of attraction” means the obligation of that foreign organization to collect Swiss VAT on all its services from Swiss recipients (hence also VAT registered recipients).
Changes in services provided electronically must be taken into account from the third quarter of 2020 (from 1 July 2020).