As part of the upcoming changes to the Swiss VAT system, we would like to inform you about the important changes that will come into force on January 1, 2024. Value added tax (VAT) will be increased to 8.1% from this date, which will have a significant impact on various services and offers, including fitness subscriptions and memberships.
Important points about the new regulation
- Time of performance is decisive: The applicable tax rate does not depend on the date of invoicing or payment, but on the time of performance (pursuant 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 with 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 supplies: For complex cases, such as a majority of supplies, special provisions apply, which can be found in the VAT Info Tax Object.
- Prepayments and prepayment invoices: The new tax rate applies to advance payments and advance payment invoices where the date of performance is after December 31, 2023.
Example for clarification
One quarter of a fitness subscription that runs from October 1, 2023 to September 30, 2024 (October 1, 2023 to December 31, 2023) must be charged at the old tax rate of 7.7% and three quarters (January 1, 2024 to September 30, 2024) at the new tax rate of 8.1%.
These changes are the result of new legal requirements and we at swiss active will endeavor to guide you through this transition and eliminate any ambiguities. Further information can be found in the factsheet, which is available in the login area.
