Changes to VAT Rules from 2025

In this article

As of January 1, 2025, significant changes have been introduced to the VAT law. Below is a summary of the main updates:

  1. Mandatory electronic processing of VAT data.
  2. Introduction of more than two VAT rates for the flat-rate and balance methods.
  3. Option to choose annual VAT reporting.

Full details are available in the documentation of the Federal Tax Administration.

Update Status  (21.10.2025)

Two versions of the VAT extension are available:

VAT Report 2024 

  • Effective method
    • Compatible with accounting both before and after 2025
    • Transmission format eCH-0217 1.0.1: currently supported by the FTA portal
  • Flat/Fixed rate method
    • Usable for accounting up to 31.12.2024
    • Transmission format eCH-0217 1.0.1: no longer supported by the FTA portal

VAT Report 2025 (recommended)

  • Effective method
    • Compatible with accounting both before and after 2025
    • Transmission format eCH-0217 1.0.1: currently supported by the FTA portal
    • Beta Release
      • Uses the new transmission format eCH-0217 2.0.0
  • Flat/Fixed rate method
    • Compatible with accounting from 2025
    • Compatibility with previous years is available only via the Beta version
    • Allows use of more than 4 VAT rates
    • Transmission format eCH-0217 1.0.1: no longer supported by the FTA portal
    • Beta Release
      • Uses the new transmission format eCH-0217 2.0.0
      • Compatible with accounting before and after 2025
      • Possibility to use code 415 for VAT corrections when switching from flat rate to effective method

How to install the Beta version (Beta Release)

  • Menu Extensions > Manage Extensions.
  • Select Installed from the menu on the left.
  • Search for the extension (from those listed above) and select it.
  • Choose Beta Release as the preferred channel (instead of Stable Release)
    You can switch between Beta and Stable channels at any time.
  • Click the Close button.

Data transmission in XML format

Currently, XML transmission to the FTA portal is in a transitional phase due to the switch to the new eCH-0217 E-VAT 2.0.0 format.

Based on the information we have:

  • It is currently possible to submit the VAT report using the effective method.
  • For the flat rate method, however, transmission is not yet available. The transition to the new format is planned in the coming weeks (we were given the provisional date of 16.10.25, but it is not yet confirmed).
  • To transmit using the new 2.0.0 standard, you must use the Beta version of the VAT Report 2025 extension.

In case of problems uploading the XML file to the FTA portal, you can:

  • Generate the PDF form directly in Banana Accounting.
  • Manually enter the data in the FTA portal.

VAT Advance Payments Management

The revision of the VAT law, in effect since January 1, 2025, introduces the possibility of making advance payments for the annual return.
In Banana Accounting, these advances are currently not visible in the form but are managed directly in the accounting records, due to the complexity of integrating them into the official model.

Requirements

To use the VAT extensions, you need to:

If you have an earlier version of Banana, or the Professional plan of Banana Plus, see the page Update program and plan.

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