VAT, GST, consumption tax, sales tax, use tax – no matter what term, or name, is used it is clear that the taxation of the digital economy is growing in popularity.
Here we outline the tax jurisdictions where such destination-based indirect tax rules are in place.
European Union Value-Added Tax (VAT) rate: 28 EU Member State VAT rates - taxation depends on location of the consumer In January 2015 new rules on the taxation of cross-border supplies of digital services to EU-based consumers came into force.
Compliance with international tax regimes can be a mountain to climb for merchants that’s why we continue to expand and today can unveil our Swiss VAT support. Swiss VAT support: the key element to digital sales Since January 1, 2010, the Swiss Federal Tax Authority (FTA) has levied a value added tax (VAT) on the supply of services from non-resident companies to Swiss residents.
Article 10 of the Swiss VAT Act states that VAT is applied to a service supplied from “any person who carries on a business based abroad that supplies telecommunication or electronic services on Swiss territory to recipients who are not liable to the tax”.
Switzerland has pushed out the introduction of a zero-threshold for taxing digital services supplied by multinationals to Swiss consumers.
The change to Switzerland EU VAT legislation was to have taken place at the end of this year but will now not come into effect until January 1, 2017. This move gives digital service multinationals supplying consumers in Switzerland some breathing space, it gives them time to comply.
The new rules, being introduced as part of the new Swiss VAT act, include a change to the VAT registration threshold for foreign companies and most non-residents who are providing taxable supplies in Switzerland.