At its meeting on 25 October 2023, the Federal Council initiated the consultation procedure on the partial revision of the VAT Ordinance (VVV). The revision includes, in particular, the implementing provisions from the partial revision of the VAT Act (VVG), various simplifications in the area of reporting according to the balance and flat rate method, and a strengthening of the obligation to use the electronic portal.
The partial revision of the VAT Act approved by parliament in June implemented several motions in particular. The amendment of the law is followed by an adaptation of the VVG, for example in the area of the taxation of online platforms and the newly introduced annual statement.
The Federal Council is taking the opportunity to update and clarify the OIVA on other points as well, e.g. by completely reworking the balance rate method and the flat rate method. The aim is to determine the tax liability more precisely and to simplify these methods in the context of VAT reporting, to the benefit of small and medium-sized enterprises. As an anti-fraud measure, the reporting procedure is henceforth also to be applied compulsorily to cash payments in excess of CHF 15,000 for taxable services between taxpayers.
The project also provides the compulsory use of the electronic portal for requests and notifications submitted under the all voluntary methods of balance rates, flat rates, annual reporting and group taxation.
The entry into force is planned for 1 January 2025. The introduction of the annual statement is also hoped for by that date, in view of which extensive IT adjustments are necessary.
The consultation will end on 8 February 2024.