VAT Rates Change in Switzerland From 2024

Table of Contents

I Introduction

II Configuration in SAP Business One

III Changes in Coresuite

IV VAT Form 2024

I Introduction (Back to Table of Contents)

Based on the announcement of the Federal Tax Announcement (FTA), In the vote of 25 September 2022, the amendment to the AHV Act and the federal decree on the supplementary financing of the AHV were accepted. This results in a change in tax rates in Switzerland.

From the 1st of January 2024, the following current VAT rates apply in Switzerland:

For more details about changes, please see the FTA site Mehrwertsteuersätze ab 2024.

II Configuration in SAP Business One (Back to Table of Contents)

In order to fulfill the tax authority requirement, you need to configure SAP Business One accordingly.
The procedure will be identical to the tax rate change in 2018, according to which the time or period of service provision is decisive for the assessment of the applicable tax rate.

In general, the following steps have to be performed:
    - Add a new temporary tax code for each currently valid tax code where since 1.1.2024 a new tax rate should apply
    - Add a definition for each temporary tax code added to the system
    - Change the definition of original tax codes
    - Update the VAT declaration box and BAS code definition

Please note that below you can find examples and the required tax codes differ based on the needs of every customer due to their area of business.

Modification of Existing Tax Codes

This modification should be done to differentiate between the old and new/temporary tax codes.

Path: Administration → Setup → Financials → Tax → Tax Groups.

Steps:
 - Double-click on the highlighted row (or click on the Tax Definition button) to define the specific "Valid From" date

 - The new Tax Definition form opens, where you can add new validity and tax rate

 - Entries indicating tax rate can be changed generally and this modification needs to be done for all relevant tax codes/rates.

Temporary tax codes' setup for the transition period

The purpose of the temporary tax codes is to ensure the correct invoicing during the transitional phase. It means, to ensure the correct invoicing of invoices issued in the year 2023 that fall partially or fully in the 2024 period, but also for the invoices or returns created in the year 2024 that are related to the period of 2023.

Modification of The Temporary Tax Codes For The Transition Period

Add temporary tax codes to the “Tax Groups – Setup” table.

Path: Administration → Setup → Financials → Tax → Tax Groups.

- We recommend choosing the definition universally as it can not be changed once added.
- If you have temporary codes from tax change from 2018, you can reactivate them and modify the current tax rate and validity accordingly.
- This reversal setup example ensures that the tax rate of 8.1% in 2023 will be charged with the booking date 1 and 7.7% in 2024 with the booking date 2. So you can map here the exceptions described.

Mapping of tax fields for the Tax Declaration Report

Definition valid from Q3 of 2023

Definition valid from Q1 of 2024

Please note that SAP will also deliver documentation related to the configuration of SAP Business One tax codes, however, at the moment we do not have any specific date.
We will update this article as soon as it is available.

III Changes in Coresuite (Back to Table of Contents)

Tax declaration form for Switzerland itself can be found under coresuite Reports → Financials → Tax Report → Tax Report Switzerland from 01.07.2010 (FIN60003).

If you want to run the Tax Declaration report as such, steps are:
1. Go to Reports → Financials → Accounting → Tax → Tax Declaration Box Report
2. New form "Tax Declaration Box - Selection Criteria" appears. Set the period and other parameters → OK
3. On the next form "Tax report - declaration" , click on Preview icon
4. Select the appropriate printdefinition. For year 2024, you will select the printdefinition with the name "Ab 1. Quartal 2024 Mwst.-Abrechnung Schweiz - SAP Form (FIN60008)"

When you select/open this new definition, the form (described in section IV below) will be displayed with the appropriate mapping.

IV VAT Form 2024 (Back to Table of Contents)

The following form Tax Declaration Form will be valid from 01.01.2024.

New tax rates can be declared for the first time from July 2023. The decisive factor for how the individual services are to be declared in the billing is the time or period of service provision.
Services provided up to 31.12.2023 are subject to the previous tax rates. Services provided from 01.01.2024 onwards will be subject to the new tax rates.
Please note that tax rates applicable until 31.12.2017 are not shown in the available statements and sales from services before 01.01.2018 must be provided to the FTA in writing outside of the statement.
Currently, there is also no separate tax form for the transitional period from 01.07.2023 to 31.12.2023, however, we assume that the new control fields will be available for this transition period.

(Back to Table of Contents)

Related Articles

MWST-Formulare
Coresuite 8.10 - Changelog - Section: Coresuite Accounting/Designer: Tax Change in Switzerland From January 2024