Switzerland: Tax exemptions for electric vehicles expected to be repealed, but customs duties also abolished

Importers and manufacturers of EVs weighing no more than 1600 kg will be subject to 4% automobile tax

Tax exemptions for electric vehicles expected to be repealed

The tax exemptions for imported and Swiss-made electric vehicles (EVs) under the Automobile Tax Ordinance (AStV) are expected to be repealed effective 1 January 2024. As a result, importers and manufacturers of EVs weighing no more than 1600 kg will be subject to the 4% automobile tax.

The tax base of assessment for the automobile tax basically corresponds to that of the value added tax (VAT).

  • In the case of sales or commission transactions, the agreed fee is the tax base.
  • In all other cases, market value is used.
  • If the vehicle is imported, customs duties and ancillary costs (e.g., freight) up to the first domestic destination are also part of the tax base.
  • The import tax or the domestic tax for production in Switzerland are not part of the tax base.

However, there will no longer be any customs duty for automobiles (tariff number category 87) because Swiss industrial tariffs (on all goods with the exception of agricultural products and fishery products) will be abolished effective 1 January 2024.

Read an August 2023 report (German) prepared by the KPMG member firm in Switzerland


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