Switzerland Tax Agency Seeks Comments on Draft VAT Practical Guidelines on Vehicle Rentals

The Swiss Federal Tax Administration March 4 opened a consultation on draft VAT practical guidelines on motor vehicle rental subscriptions. Topics covered include: 1) the definition of a “vehicle subscription” that makes a vehicle available to a customer under a mobility contract for an agreed monthly amount, and that excludes fuel and electricity; 2) general vehicle rental subscription contract terms, such as for an 18-month subscription period; 3) specific conditions for exempting additional insurance coverage from VAT; 4) delivery and cleaning services subject to VAT; and 5) a VAT exemption for cash payments made for damages at the end of ...