Increased VAT Registration Threshold

With effect from 1 January 2023, the Swiss Federal Council will increase the VAT registration threshold for sport clubs, cultural associations, and charities from CHF 150,000 to CHF 250,000. Organisations whose turnover falls under the new threshold can deregister within 60 days after the end of a taxable period.

End Customers Can No Longer Address Claims for Overcharged VAT to HMRC

Her Majesty’s Revenue and Customs (HMRC) issued a policy concerning the position of customers in the EU who have been charged the wrong amount of VAT. Since 1 January 2021, HMRC policy is that the right to take action against HMRC to recover incorrectly charged VAT, where it is impossible or excessively difficult to recover it from the supplier, no longer exists.

Delays in VAT Group Registration Process Addressed

HMRC has issued guidance clarifying what applicants for VAT group registration need to do while waiting for a response from HMRC. The reason is that there have been delays in dealing with VAT group registrations on the part of HMRC that have been exacerbated by staff shortages because of the pandemic.