New VAT Act into effect on January 1st 2010: Amendment to VAT duty!
This summer, the Swiss Parliament passed the new VAT Act. The new VAT Act particularly aims to simplify the VAT and thereby reduce the burden on enterprises. The details of all modifications as well as the exact implementation in practice are in many cases not yet clear.
The most important change concerns the VAT duty issue. A new feature is that basically every business is subject to VAT duty, although an exemption applies for a turnover of up to CHF 100’000. This replaces the old thresholds of CHF 75’000 turnover and CHF 4’000 tax amount (cp. the previous post on VAT duty). What is also new is that it is possible to become subject to VAT even with a turnover of less than CHF 100’000, i. e. one can waive the exemption. This is even possible if the entreprise is not achieving any revenue yet, e.g. in the development phase. If one wants to voluntarily become subject to VAT, one has to notify the Swiss Federal Tax Administration. The subjection is valid for one year. Who is not anymore subject to VAT due to the new turnover threshold (e.g. with a revenue of CHF 85’000), and does not intend to voluntarily become subject to VAT, has to notify the Swiss Federal Tax Administration by January 31st.
More details will follow as more informations become available.
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