Settling service contracts in Switzerland with split tax rates

The standard rate of VAT in Switzerland will increase to 8.1% as of 01.01.2024. Thanks to a newly published addition, Swiss Customers who use the additional function additional featureLicense sales and service contracts” will be supplemented to bill for year-to-year services as service contracts at the current and increased tax rate.

Billing according to different tax rates

Therefore, if there are ongoing, periodic services that extend into their term after 2024, the percentage that is only provided in 2024 is taxed at 8.1%. The percentage provided in 2023 is taxed at 7.7% as before.

How exactly the supplement works, we explain step by step on our Knowledge Base.

Vertec 6.7: Validity date for VAT rates

With the next major release of Vertec 6.7, it will be possible to provide an effective date for VAT rates in Vertec. This means that Vertec is also equipped as standard for all future VAT changes. Vertec 6.7 will be released at the end of the year with sufficient lead time for our customers in Switzerland to be optimally prepared for the VAT adjustment as of 01.01.2024.

Conclusion

Swiss Vertec customers are already billing multi-year service contracts with a split tax rate. The supplement to the additional function additional feature can only be used for billing service contracts. Customer who have no additional feature yet use the additional function can be found on the Knowledge Base all technical information and download.