05.16.23

VAT return modifications to accommodate new tax rates

The overhaul of a country’s VAT rates is a significant fiscal measure, and the decision to enact such a measure is often influenced by economic, social, and political factors. Switzerland’s VAT rate changes, projected for 1 January 2024, were triggered by social agendas that fuelled the need for change in Switzerland’s fiscal framework. You can read about the expected VAT changes in Switzerland and the underlying motivations for the change in our recent post here.

Tax changes are, however, just one component within a much broader fiscal infrastructure, and the Swiss government will need to enact several other changes to accommodate the new VAT rates. One of these adjustments is the modification to the Swiss periodic VAT return to take account of the new rates.

The ‘old’ rates (i.e. those that apply prior to 1 January 2024, and which are currently in use) may still be required- and so the VAT return will continue to incorporate these rates, alongside the new rates which come into existence from 1 January 2024.

Tungsten Network will support the VAT rate changes in Switzerland scheduled for 1 January 2024. Cognizant of the fact that the VAT rates which are currently in use and which will be replaced by new VAT rates will still be required- for example, when raising credit notes- our solution will also contain both pre and post 1 January 2024 tax rates to accommodate our Swiss market.