CVA Tax / Accounting / Structuring Working Group submits its opinion regarding the latest draft VAT guidance on the electronic supply of services to the Swiss Federal Tax Administration
Author: Markus Vogel, Chair CVA Tax / Accounting / Structuring Working Group and Tax Partner at KPMG Switzerland
In the context of a public review of the draft VAT guidance on electronic supplies of services issued by the Swiss Federal Tax Administration (SFTA) on 11 April 2019, the CVA Tax / Accounting / Structuring Working Group (CVA TAS WG) has submitted on Thursday, 9 May 2019, its opinion to the SFTA.
In particular, the CVA TAS WG asserts that:
- There is a need for a clear differentiation between decentralised blockchain platforms (cybernetic networks and protocols) and traditional digital platforms such as e-commerce applications;
- Whether there is an electronic supply of services in case of a decentralised blockchain platform needs to be assessed in accordance with its factual use and use possibilities as well as its legal structuring;
- The regulatory classification of a token issued on a decentralised blockchain platform is solely an indicator but not conclusive for the VAT treatment;
- The simplification of blockchain technology (and the respective application of procedural techniques based on decentrally stored algorithms) as electronic supplies of services is factually inaccurate and constitutes an unjustified uniformisation;
- The topic of electronic supplies of services within the blockchain / crypto industry should be rather subject of an independent industry information and needs to be clearly distinguished from the VAT industry information n° 13.
The CVA TAS WG looks forward to monitoring the developments at the SFTA and keeping you up-to-date.
If you are interested in viewing the draft VAT guidance resp. the submission made to the SFTA, please check out the attachments to this contribution here: