Switzerland Tax Agency Seeks Comments on Draft VAT Practical Guidelines on Car Mileage Approach

The Swiss Federal Tax Administration Oct. 24 opened a consultation on draft VAT practical guidelines on the car mileage approach. Topics covered include clarifying: 1) that there’s no VAT consequence for private employee use of general subscriptions (GAs); 2) that if employees receive GAs without a business need, they must be declared under the purchase price in the pay slip, with such services being subject to the 8.1 percent standard VAT rate; 3) that commutes are consider paid when employees pay at least 0.75 Swiss francs (US$0.94), increased from 0.70 francs (US$0.88), or at least the cost price per kilometer ...