Federal Council wants to eliminate VAT advantages for foreign companies

The Federal Council wants to eliminate the prevailing competitive disadvantage of Swiss companies in the field of VAT. Foreign companies shall become equally VAT liable in the future. On 25 March 2015 the Federal Council passed the draft proposal to revise the VAT law accordingly. The new law shall not distinguish between domestic and foreign companies but only whether their taxable revenue exceeds CHF 100'000 worldwide. Today, this limit applies to taxable revenue generated in Switzerland only, which is why domestic firms are currently disadvantaged.