Beginning on 1 January 2019, the corporate fee for radio and television will be device-independent and based on the worldwide turnover businesses declare in their Swiss VAT returns.
The Federal Act on Radio and Television requires all Swiss VAT payers to pay the corporate fee irrespective of whether they have its registered office, domicile or a permanent establishment (PE) in Switzerland. However, on 30 August 2018, the Swiss Federal Tax Authority announced that only businesses liable for Swiss VAT with a registered office, domicile or Permanent Establishment (PE) on Swiss territory will be required to pay the fee.
According to the explanatory report to the Federal Act on Radio and Television, requiring businesses without a registered office, domicile or PE in Swiss Customs territory to pay the corporate fee would infringe both the Law of Nations and Switzerland’s obligations under various interstate agreements.
The Federal Tax Authority has not changed its position that all Swiss VAT payers, both domestic and foreign domiciled, must declare their worldwide turnover in the VAT return.
Read more about the topic on one of our previous blog posts.