VAT Changes Effective January 1, 2025 - Merchant FAQ

1. What is changing under the new VAT law?

From January 1, 2025, Uber Eats Switzerland GmbH will be classified as the deemed supplier of items sold through its platform for VAT purposes under Article 20a of the Swiss VAT Act (MWSTG).

This means:

• Uber Eats Switzerland will collect and remit VAT on all goods sold through the Uber Eats platform to the Swiss Tax Authorities (regardless of whether the Merchant is VAT-registered or not).
• The supply of goods between the Merchant and Uber Eats Switzerland will be VAT-exempt. The Merchant is no longer required to charge and account for VAT for these supplies.

For the Merchant, this means that the VAT responsibility for items shifts to Uber Eats Switzerland for transactions made via the platform. Merchants need to ensure their menu VAT rates are accurate and comply with the law (regardless of whether they are registered for VAT or not).

2. What actions should I take before January 1, 2025?

To comply with the new VAT regime, Merchants must take the following steps:

Provide and verify VAT rates on menu items: Merchants need to ensure that the VAT rates for all menu items are correct. This is critical for Uber Eats Switzerland to apply the appropriate VAT to transactions.

Update menu prices (if required): Merchants exempt from VAT under the Small Business Regime should update menu prices to include VAT to avoid financial impact. VAT-registered merchants do not need to update the menu prices. Please note that the current prices are VAT-inclusive, so no action is required.

Review and Accept Supplemental Terms: Merchants should review the updated Supplemental Terms and ensure they understand the implications of the VAT reform on their business. No signature is required; acceptance is automatic upon continued use of the Uber Eats platform.

For guidance on updating VAT rates and menu prices, please follow the instructions available here or contact support.

3. How does this affect my invoices?

The new VAT regime will change how invoices are issued on the Uber Eats platform:

Invoices issued currently:

• Food & other goods: Uber Eats issues invoices to customers in your name and on your behalf if requested by your customers with VAT (if applicable).
• Uber Marketplace Fee: Uber Eats issues weekly invoices to Merchants with VAT.

Invoices issued as of January 1, 2025:

• Food & other goods (to customers): Merchants will no longer need to issue invoices to their customers (currently facilitated by Uber Eats) from a VAT perspective. Instead, Uber Eats as a deemed supplier of goods will issue invoices to customers in its own name where required. These invoices will reflect the VAT collected and remitted by Uber Eats Switzerland on the goods sold by Merchants on the Uber Eats platform. Note that if Merchants decide to issue customer invoices, the Merchant should ensure they do not duplicate VAT charges already applied by Uber Eats Switzerland.

• Food & other goods (to Uber Eats): Under the new VAT regime, Merchants will be deemed to supply their goods to Uber Eats Switzerland. For this transaction, Uber Eats Switzerland will self-issue weekly invoices for the goods sold via the Uber Eats platform (less any Merchant’s discounts, refunds, and adjustments). This invoice will be VAT-exempt.

• Uber Marketplace Fee: Uber Eats Switzerland will no longer issue weekly invoices for the Marketplace Fee. Instead, the Marketplace Fee and any discounts on the Marketplace Fee will be reflected on the weekly self-issued invoices for the goods (VAT-exempt as per above). Please note that other Uber Eats charges to Merchants such as Subscription or Activation Fees (if applicable) will be invoiced separately by Uber Eats Switzerland with VAT (so no change for those fees).

All invoices (except for Uber-to-customer invoices) will be available via the Uber Eats Manager platform for download and compliance purposes.

4. I’m exempt from VAT under the Small Business Regime. What’s the impact?

If you are exempt from VAT due to the Small Business Regime, two key changes will occur:

Uber Marketplace Fee VAT exemption:

Currently, Uber Eats charges 8.1% VAT on the Marketplace Fee and withholds this amount from payouts. Starting January 1, 2025, this VAT will no longer be applied to the Uber Marketplace Fee. No action will be required from you regarding this change.

Items sold on the platform become subject to VAT:

Uber Eats Switzerland will apply VAT to items sold on the platform and remit it to the Swiss Tax Authorities. You might want to update your menu prices to include VAT to ensure your payouts remain unaffected. Please make sure you add the VAT rates to your menu items to be compliant with the new VAT regime.

Example:

If the price of your food item currently is CHF 20 in your Uber Eats menu, and the applicable VAT rate is 2.6%, you may update the menu price to CHF 20.52 (CHF 20 + CHF 0.52 VAT). This ensures that your net payout remains the same and the cost of VAT is covered by your customers.

5. Will the Marketplace Fee be subject to VAT?

No, the Uber Marketplace Fee will not be subject to VAT under Article 20a MWSTG. Instead, the Marketplace Fee will be reflected on the self-billed invoices issued by Uber Eats Switzerland together with the food and other goods.

6. What happens if I provide incorrect VAT rates?

All Merchants (regardless of their VAT registration) are responsible for ensuring that VAT rates applied to their menu items on Uber Eats are accurate. If an incorrect VAT rate is provided:

• Uber Eats Switzerland may update any discrepancies after January 1, 2025, without prior consent from the Merchant.
• Incorrect VAT rates may result in issues with tax compliance and incorrect payouts.

To avoid these issues, please carefully review and confirm the VAT rates applied to all menu items before January 1, 2025.

7. Where can I see the VAT rates for my menu items?

You can view and update the VAT rates for your menu items directly in Uber Eats Manager. This tool provides a clear overview of the VAT rates applied to each item and allows you to make changes as needed.

8. How will my payouts be impacted?

VAT-Registered Merchants: There should be no financial impact provided your VAT rates on the menu items are complete and correct. Note that your weekly payout will be impacted since i) Uber Eats will no longer remit VAT on the goods you sell via the Uber Eats platform and ii) there will be no VAT applied to the Uber Marketplace Fee.

Non-VAT-Registered Merchants: If you do not adjust menu prices to include VAT, your payout from Uber Eats will be impacted by the VAT withheld and remitted to the Swiss Tax Authorities by Uber Eats Switzerland. Please make sure you provide VAT rates to your menu items directly in Uber Eats Manager.

Merchant reports from the Uber Eats Manager portal will be updated to reflect the VAT that Uber Eats Switzerland is required to collect and remit VAT instead of you. The updated merchant reports will be available in early January backdated to 1 January 2025, if necessary.

9. How do I get assistance?

Our tax partner, Talenz, will assist with VAT-related questions starting January 1, 2025. You can contact them directly via this form.

For technical or administrative support, you can reach out to Uber Eats support via WhatsApp, tablet chat, or email.

10. What happens if I don’t comply with the new terms?

Failure to comply with the new VAT regulation and Supplemental Terms may lead to:

• Incorrect VAT application, resulting in potential tax penalties.
• Termination of your partnership with Uber Eats.

To ensure a smooth transition, please review and implement the necessary changes (such as your VAT for the items in your menu) before January 1, 2025.

11. Will Uber Eats monitor VAT rates provided by Merchants?

Yes, Uber Eats Switzerland will monitor VAT rates provided by Merchants. Monitoring methods may include:

• Comparing VAT rates across similar items in the database.
• Performing manual reviews to ensure compliance.
• Making adjustments to incorrect VAT rates where necessary.

12. How can I stay informed about tax changes?

Uber Eats will communicate any updates via email. You can also visit the website of the Federal Tax Administration (FTA) for details about the new legislation and guidance on it.

We encourage you to stay proactive in understanding and complying with the updated VAT requirements.

13. How is the delivery fee treated under the BYOC model?

Under the BYOC (Bring Your Own Courier – merchants who use their own couriers without going through the Uber Eats marketplace) model, Uber Eats does not collect the delivery fee. Instead, this fee is paid out to the Merchant together with all other payment components, and the Merchant is responsible for remitting VAT on this amount.