Liechtenstein: Legislation includes VAT amendments
From 2025, VAT registration and declaration will only be possible electronically.
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November 27, 2024
Law No. 641.20, which includes amendments to Liechtenstein’s value added tax (VAT) law, was published in the official gazette.
The VAT amendments aim to improve tax fairness by taxing new digital business models, increasing the efficiency of tax collection, and eliminating uncertainties in practice.
- The amendments introduce a tax liability for online platforms, which now have to pay VAT on sales made on their platforms.
- The trade in emission rights will also be subject to the acquisition tax.
- Subsidies from communities are more clearly defined to create legal certainty.
- For travel agencies and tour operators, there are new regulations regarding billing and input tax deduction.
- Event organization services will be taxed at the recipient's location, and for certain streaming services, the place of performance is determined at the recipient's headquarters.
- Further amendments include clarified regulations, new exceptions, and notably, menstrual hygiene products are now subject to a reduced VAT rate.
- From 2025, VAT registration and declaration will only be possible electronically.
Companies, especially those in the fields of online platforms, travel agencies, and emission trading, must adapt their business processes to the new regulations.