Important information about the upcoming VAT increase
In the wake of the upcoming changes to the Swiss VAT system, we would like to inform you about the important changes that will come into force from January 1, 2024. Value Added Tax (VAT) will increase to 8.1% from this date, which will have a significant impact on various services and offerings, including fitness subscriptions and memberships.
Important points about the new regulation
- The time at which the service is provided is crucial: The applicable tax rate does not depend on the date of invoicing or payment, but rather on the time at which the service is provided (according to Art. 115 Para. 1 VAT Act).
- Periodic services: For services such as fitness subscriptions that are provided periodically, the period in which the service is provided is decisive. Services provided until December 31, 2023 are subject to the old tax rate, while services provided from January 1, 2024 are subject to the new tax rate.
- Invoicing for different tax rates: For services that fall within a period with different tax rates (e.g. annual subscriptions that extend beyond the turn of the year), the amount and date for each tax rate must be shown separately on the invoice. Otherwise, the entire amount will be offset against the new tax rate.
- Special provisions and majority of services: For complex cases, such as the majority of services, special provisions apply, which can be found in the VAT information tax object.
- Advance payments and prepayment invoices: The new tax rate applies to advance payments and prepayment invoices for which the service date is after December 31, 2023.
Example for clarification
A fitness subscription that runs from October 1, 2023 to September 30, 2024 must be taxed one quarter (October 1, 2023 to December 31, 2023) at the old tax rate of 7.7% and three quarters (January 1, 2024 until September 30, 2024) will be billed at the new tax rate of 8.1%.
These changes are the result of new legal regulations and we at swiss active will endeavor to accompany you through this transition and eliminate any ambiguities. Further information can be found in the fact sheet, which is available when you log in.
