Liechtenstein introduced comprehensive changes to its value-added tax regime, which will come into force from January 1, 2018. The GOV amended the existing VAT laws on November 10, 2017, and published the changes in the nation’s Official Gazette.
The amendment provides for several changes to the territory’s value-added tax rates. These mirror changes were implemented from the same date in Switzerland, as Liechtenstein has effectively adopted the Swiss VAT regime, albeit with its own system of VAT administration.
Meaning, Liechtenstein’s main VAT rate was reduced to 7.7 percent from eight percent, and the reduced rate on accommodation fell by 0.1 percent to 3.7 percent. The 2.5 percent reduced rate was unchanged.
The territory also adopted changes to the scope of the 2.5 percent rate, extending it to electronic newspapers, magazines, and books, and introduced margin taxation for collectors’ items.
Further, the amendment introduced measures to level the playing field for domestic businesses competing with overseas online retailers, aligning with those announced in Switzerland, to ensure that supplies to residents are appropriately taxed.
Copyright: TAXEDO LLP.
