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

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.