Digital services: will platforms soon be liable for Swiss VAT?

Will platforms soon be liable for Swiss VAT?

Since 1st January 2025, electronic platforms facilitating distance sales have been deemed to be the suppliers of the goods concerned: they, rather than the sellers, are required to collect the VAT and remit it to the Swiss Federal Tax Administration (SFTA). The Federal Council now intends to extend this regime to electronically supplied services. The draft amendment to the Swiss VAT Act, submitted for consultation on 5 December 2025, aims to ensure equal treatment of Swiss and foreign providers.

1. The proposed mechanism: the platform as deemed supplier

Art. 20a para. 1bis of the preliminary draft of the VAT Act would attribute the supply to the platform that brings suppliers and recipients together for the purpose of concluding a contract.

The transaction would then be split into two separate supplies:

From the supplier to the platform: a supply exempt from VAT.
From the platform to the non-taxable recipient in Switzerland: a taxable supply, in principle at the current standard rate of 8.1%, invoiced and accounted for by the platform.

The scope would include, in particular, the downloading and streaming of software, apps, games, films and music, where these services are sold through a third-party platform. Streaming services that market their own content already account for VAT as direct suppliers. Online bookings of accommodation and passenger transport are excluded.

2. Consequences for platforms and suppliers

Platforms: they would be treated as the suppliers of the electronic services sold on their platform to non-taxable recipients in Switzerland, and would therefore become liable for the VAT. VAT would thus be collected from a small number of platforms rather than from the many suppliers.
Foreign suppliers: if they operate exclusively through platforms, they would no longer be liable for VAT in Switzerland once the reform has entered into force and could consider deregistering from Swiss VAT register. Their direct sales (via their own website or app) would remain taxable.
Swiss suppliers: their supplies to a Swiss platform would be considered as VAT exempt, whereas supplies to a foreign platform would be considered as outside the Swiss VAT scope. Their direct sales would remain taxable: they would have to determine, for each supply, whether it is made directly to the customer or via a platform.

The explanatory report further specifies that suppliers could be held jointly and severally liable for the tax if the platform fails to account for it correctly. In addition, Art. 79a of the preliminary draft of the VAT Act would allow the SFTA to order the blocking of access to the online offerings of businesses that fail to meet their obligations, a measure that would be implemented by telecommunications service providers.

3. Timeline and recommended actions

The consultation procedure closed on 19 March 2026, and no date of entry into force has yet been set. Nevertheless, businesses concerned are advised to identify their flows of electronic services to Switzerland now, assess the impact on their VAT status and review their contractual arrangements with platforms and suppliers.

As every distribution model is unique, this reform requires a tailored analysis. RSM Switzerland can help you assess its impact on your structure. Our VAT team is at your disposal should you require any further information.