Will Switzerland implement reduced VAT rate for ebooks?

As discussed before, France and Luxemburg decided to apply the reduced VAT rate to ebooks, most likely also to attract publishing companies to their countries. As this treatment does not comply with the applicable EU rules, the EU Commission initiated the appropriate action against these two countries.

As Switzerland is not part of the EU, EU VAT rate restrictions do not apply. According to the Swiss Parliament’s website the “Bundesrat” is requested to consider the application of the reduced VAT rate to ebooks, as part of the ongoing review of the VAT legislation.

It appears that Swiss legislators would like to remove the distinction in VAT treatment which exists between paper books and ebooks.

What does this mean for you?

If you are involved in publishing or distributing ebooks, you should also monitor the Swiss ebooks and eservice developments. As you might be already aware you are required to register for VAT in Switzerland if your B2C sales to Swiss residents exceed CHF 100’000 in a single calendar year.