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JENS BERGERMANN

The Swiss e-commerce market is attractive, but regulatory changes require constant attention. One such significant new development is Article 20a of the Value Added Tax Act (VATA), which, as of January 1, 2025, redefines the rules for selling via online marketplaces in Switzerland. This legislative change has far-reaching consequences, not only for the marketplace operators themselves but especially for retailers who offer their products in Switzerland via these platforms – particularly those from abroad. In this post, we will examine the details of Article 20a of the VATA for you and explain what this means for your business.

What Exactly Does the New Article 20a of the VATA Regulate?

Article 20a of the VATA introduces a liability regulation for operators of online marketplaces for the unpaid value-added tax on deliveries from retailers operating on their platform. This regulation is an important step by the Federal Tax Administration (FTA) to close tax loopholes in digital commerce and ensure fairer competition. Only marketplaces where direct sales with automated data flow occur are affected – not pure classifieds platforms such as car or real estate portals.

The regulation, which came into force on January 1, 2025, obliges marketplaces that facilitate mail-order business to be jointly and severally liable for the VAT. If a retailer fails to remit the due tax, the FTA can now claim it from the marketplace operator.

In practice, leading Swiss marketplaces such as Galaxus or Manor have already adjusted their accounting systems in advance and informed their retailers early on. The central mechanism is an adjustment of the billing process:

“Since this change, the marketplace withholds the value-added tax on the sales items itself and declares it directly. For us as retailers, this only changes something in the accounting of our own value-added tax, which is then clarified with the internal accounting department or the accountant.” - Jens Bergermann (Founder of SURS)

For retailers who work with a partner like SURS, this process is seamless, as the entire tax handling runs through SURS's books.

Which Marketplaces are Affected?

In principle, all operators of electronic platforms that facilitate the mail-order business of goods into Switzerland are affected. This includes large international players like Amazon, Zalando, or eBay, as well as significant national platforms such as Galaxus, Manor, or Decathlon.

However, the practical impact of the regulation differs fundamentally depending on whether the goods are already stored in Switzerland or are shipped from abroad.

• National marketplaces (e.g., Galaxus, Manor): Most sales via these platforms are based on goods that are already in a Swiss warehouse and have been fully cleared through customs. Here, the new regulation applies directly, with the marketplace withholding the VAT when settling with the retailer.

• Global players (e.g., Amazon): Amazon does not operate its own warehouse in Switzerland and ships most goods from neighboring EU countries. These are small shipments that are checked by Swiss customs. The Swiss VAT (currently 8.1%) and an administrative customs processing fee are added to the value of the goods. In this case, the end customer subsequently receives a separate invoice from customs. The VAT is thus collected at the border, which makes the process more complex for the retailer and the customer.

How Does the Regulation Affect Retailers?

The new liability regulation for marketplaces has direct and indirect effects on the retailers who use these platforms. Although the primary responsibility for VAT remains with the retailer, the joint liability of the marketplaces leads to increased requirements such as proof of tax compliance and the risk of being blocked for non-compliance.

A common mistake made by foreign retailers is misjudging the CHF 100,000 turnover threshold at which VAT liability in Switzerland arises. Some try to "let their business run," then exceed the limit and are confronted with complex back payments. A mere VAT number without a Swiss company may work for very small activities but is insufficient for a serious and scalable business.

“If you are an SME with a medium and long-term plan and want to generate real revenue, you won't get far with just a VAT number. Anyone who wants to be successful in the long term in Switzerland or any other country should have a setup from the beginning that is designed for more than 100,000 francs in turnover.” - Jens Bergermann (Founder of SURS)

What Challenges Does Article 20a Bring for Cross-Border Trade?

Particularly for foreign retailers entering or already active in the Swiss market, Article 20a of the VATA brings specific challenges. The new regulation increases the pressure on these retailers to deal intensively with the Swiss VAT system, the need for fiscal representation, and customs formalities.

The choice of logistics model becomes a key strategic issue. A concrete example from our practice illustrates this: A German brand was successfully selling via Galaxus Germany. Galaxus offered to also sell the products in Switzerland via their "EU Hub." The disadvantage: the delivery time was two to three weeks, which severely hampered sales. The brand then turned to SURS. By now storing the goods with us in Switzerland, we enable a delivery time of one to two business days – a crucial success factor in e-commerce.

More information on this topic can be found in our article: “Cross-Border E-Commerce Strategies for Switzerland”.

What Opportunities Arise from Clear Legal Frameworks?

Despite the challenges, the new regulation also offers opportunities. Article 20a of the VATA creates more transparency and legal certainty for all market participants. By making tax evasion more difficult, the regulation promotes fairer competition.

Retailers should use the new regulation as an opportunity to review their processes and ensure their tax compliance. This builds trust with marketplaces and customers. Collaborating with a specialized partner like SURS, who handles logistics, customs clearance, and tax processing, can significantly reduce complexity and accelerate market entry.

Also, find out how to generally succeed in “Selling on Swiss Marketplaces”.

Conclusion: What Do Retailers Need to Do Now?

The new Article 20a of the VATA is a significant change that requires a proactive approach. The most important areas for action are:

• Get informed: Understand the details of the new regulation and its implications.

• Check tax liability: Clarify your individual VAT liability in Switzerland.

• Ensure compliance: Register for VAT if necessary and consider a fiscal representative.

• Maintain communication: Actively communicate with the marketplaces you use.

• Evaluate partners: Check if a collaboration with a specialized sales partner like SURS makes sense.

A legal review of your situation and the choice of the right partners can be decisive for your long-term success in Swiss e-commerce. Learn more about the “Advantages of Sales Partnerships in Switzerland”.

Frequently Asked Questions (FAQ)

Does Article 20a of the VATA Also Apply to EU Retailers?

Yes, the regulation applies to all retailers who sell to customers in Switzerland via online marketplaces as soon as the turnover threshold for tax liability is reached.

How Can Retailers Prepare for the New Regulation?

Analyze your tax liability, register for VAT if necessary (including a fiscal representative), adapt your processes, and rethink your warehousing strategy. In general, it is advisable to use accounting software specialized for the respective country; for Switzerland, for example, Bexio is a proven tool for SMEs. However, the decisive advantage of a partnership with SURS is that you, as a retailer, do not need your own Swiss accounting tool. Since we legally purchase, import, and clear the goods through customs, all billing runs through our audited systems.

Do I Have to Keep My Products in a Swiss Warehouse?

No, it is not mandatory. However, a warehouse in Switzerland offers significant advantages such as faster delivery times, easier returns processing, and a better customer experience, as unexpected customs bills are avoided. A collaboration with a distributor like SURS, which has a Swiss warehouse, offers the benefits of an inland warehouse without you having to build an expensive infrastructure yourself.

Surs AG - Warehouse
Alte Buchserstrasse 10
8108 Dällikon
Switzerland

Surs AG - Billing
Alte Buchserstrasse 8
8108 Dällikon
Switzerland

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