In institutional fund management business, fund managers often receive their management fees directly from the investors in the fund (e.g. Swiss pension funds) rather than from the fund itself. Previously, the payment of these fees triggered Swiss VAT (currently 7.7%), albeit incorrectly.
Swiss voters said no to the reform of the pension scheme. As a result, Swiss VAT rates will be reduced. Taxable persons must be ready as of 1 January 2018 - a very short deadline.
Today, both chambers of the Swiss Parliament unanimously approved the partially revised VAT Act. It is expected to enter into force on 1 January 2018. Tax Authorities expect around 30,000 new taxpayers – for the most part foreign companies. What are the most important changes and the important actions that need to be taken?