In the future, women will not have to dig so deep into their pockets for feminine hygiene products. The Council of States is in favor of a tax reduction on tampons and sanitary towels. Therefore, the reduced VAT rate of 2.5 percent and no longer the normal rate of 7.7 percent should apply to monthly hygiene products. The Council of States followed the Federal Council and the National Council unopposed. The federal government expects a drop in turnover of about CHF 5 million.
The Campax organisation, which campaigned for the reduction, is pleased with the success. She wants to use the wind at her back to take another step. She starts a campaign for free menstrual products.
“We are convinced that an offensive is needed now,” said Campax campaigner Virginia Köpfli. “Monthly hygiene products should naturally be anchored in the spaces we move in every day.”
Free menstrual products are already a reality, for example in Scotland, New Zealand or France, but also in the city of Geneva or at ETH Zurich.
VAT obligation for foreign mail order companies
The Council of States approved a number of other amendments to the Turnover Tax Act on Tuesday. For example, the VAT obligation for foreign mail order companies is intended to put money into the federal government’s treasury.
If you order goods on the Internet today, the foreign mail order company would have to pay Swiss VAT if its deliveries exceed 100,000 francs per year. However, since this rule came into effect, only a few companies have registered for VAT.
In the future, shipping companies abroad will be liable for VAT if they deliver ordered goods to Switzerland. However, this only applies to physical deliveries for the time being, but not to services offered on platforms.
The Economic Commission of the Council of States has also discussed a VAT obligation for services such as downloaded games, spokesman Erich Ettlin (middle/OW) reports. However, the Commission wants to take up the point separately and allow for consultation.
travel agency and Spitex
The councils have to agree on the rest. For example, the Council of States wants to exempt travel agency services – at home or abroad – from VAT. He tacitly followed the provisional advisory committee, which wants to prevent unequal treatment in this way.
The Bundesrat applies for the VAT exemption only for services provided by foreign travel agencies. He wants to carry out a mandate from parliament. However, the National Council would not hear of this exception again and maintained the status quo when it first discussed the bill in May 2022.
With a vote of 20 against 18, the Council of States decided that Spitex aid should be tax-free. It should not matter whether non-profit or for-profit organizations provide care, care and assistance in the household. An inexplicable discrimination must be eliminated, said Pirmin Bischof (centre/SO).
Like the National Council and the Federal Council, the defeated minority wanted the status quo and allow the exception only for nonprofits. The tax exemption for organizations that provide services in competition with other companies creates new distortions, says Carlo Sommaruga (SP/GE).
In parallel with the tax exemption for hospital treatment, the National Council also wanted to exempt services from outpatient clinics and day clinics from the tax. Here, however, the Council of States wants to stick to the current law.
Finally, the small chamber now only wants to subject environmentally friendly pesticides to the lower tax rate of 2.5 percent and not all of them anymore. This also corresponds to a motion request; the National Council has yet to decide on this.
Call for total overhaul
The Council of States is not entirely satisfied with the proposal. For example, Ruedi Noser (FDP/ZH) criticized the numerous VAT exemptions. He thought it was time for a total revision of turnover tax based on the principle that those who create added value owe turnover tax. “It doesn’t matter if it’s one sentence or several.”
Big questions would not be answered, repeated Stefan Engler (centre/GR) and mentioned the distinction between VAT-subject to reimbursement and VAT-exempt subsidy. “In the end, probably only a liberation can help,” said Hannes Germann (SVP/SH).
Finance Minister Karin Keller-Sutter expressed understanding for the demands. “We are still a long way from a uniform tax rate and major simplifications are not easy,” she said at the same time. The proposal goes back to the National Council. (SDA/rus)
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
