Mail order business and platform taxation

In Switzerland, the legislator introduced the mail order regulations with effect from 1 January 2019 and supplemented them with platform taxation from 1 January 2025 onwards, in order to combat unequal treatment to the disadvantage of the domestic economy.

Because even sales for negligible amounts are subject to VAT for taxable companies in Switzerland, but VAT is only levied on imports with a tax amount of more than CHF 5, the legislator introduced the mail order regulations with effect from 1 January 2019 and supplemented them with platform taxation from 1 January 2025 onwards, in order to combat unequal treatment to the disadvantage of the domestic economy.

The mail order regulations impose a tax liability on mail order companies that send small consignments (import tax amount up to CHF 5) to Switzerland from abroad, while platform taxation imposes a tax liability on platform operators if they achieve turnover of at least CHF 100,000 from such consignments.

If a domestic or foreign mail order company or, in the case of delivery via a platform, a platform operator is entered in the Swiss VAT register, then both supplies within Switzerland and those to Switzerland from abroad are subject to domestic tax.

Further information can be obtained from the Federal Tax Administration (FTA):