Switzerland is the latest country to jump on the fast train of taxing online purchases.
Like in the EU and an increasing number of non-EU countries, online sellers of video, music, software, games etc. will be required to register for Swiss VAT and pay over 8% of the sales to Swiss customers.
The details will still have to be ironed out, it seems. The one report that generated this news did not specific that the tax requirement only applies to sales to individuals, and also reported that the registration threshold would be CHF 100,000 ($100,345) in annual profit – not sales. Seems incorrect to me.
Same thing for Israel. Their e-commerce VAT rules are still a proposal, but likely to be passed through Parliament swiftly.
So if you are currently working on configuring the global tax calculation for a company that makes online sales, it would make sense to consider the upcoming Swiss requirements – as it would be for a dozen or so other countries outside the EU.
Global VAT management for online sellers doesn’t get any easier – but thus far it seems like the EU VAT determination template for these sales broadly works in other countries as well.
Stay tuned for more on online sales.