Switzerland: Swiss VAT and Intermediary Services

12 September 2019
Vat News Switzerland


Recently the Federal Supreme Court of Switzerland released its decision on the VAT Treatment of intermediary services. Prior to the decision, there was uncertainty about whether a direct proxy was mandatory in order for the exemption on intermediary services to apply.

This uncertainty stemmed from an announced change in practice which was not in line with the letter of the Swiss VAT law. Previous Swiss VAT law stated that a power of attorney to act for and on behalf of a client was required in order for the associated services to qualify as VAT-exempt intermediary services. An announcement made by the VAT Authority held that in this context a proxy was no longer required.

The decision of the Federal Supreme court has clarified the actual position. The court confirmed that direct proxy is no longer a necessary requirement in order for an intermediary to be exempt.

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