Switzerland: Increased private share for company cars, considerations for VAT returns

Private share for company cars increased by 0.1%

Considerations for VAT returns

The private share for company cars increased by 0.1% as of 1 January 2022.

  • The first companies to take the private share increase into consideration will be companies submitting value added tax (VAT) returns monthly. The first VAT return must be submitted by 31 March 2022.
  • However, most companies submit the VAT return on a quarterly basis. For those companies, this change will need to be implemented for the first quarter (Q1) of 2022. The Q1/22 VAT returns are due by 31 May 2022. 
  • Companies applying the net tax rate (SSS) or the flat tax rate method (PSS) (as opposed to the effective reporting method) also need to take this increase of the private shares of company cars into consideration. If such companies purchase services or supplies that are provided to their employees, such companies are to declare the private shares as taxable turnover in their bi-annual VAT return.

Read a February 2022 report prepared by the KPMG member firm in Switzerland


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