WUST/ICHA
What is WUST / ICHA?
WUST (German: Warenumsatzsteuer) or ICHA (French: Impôt sur le chiffre d'affaires) was the Swiss Turnover Tax applied before the introduction of the current Value Added Tax (VAT) system. Though no longer in use, it played a foundational role in shaping Switzerland’s modern indirect tax policies. It was a turnover-based tax levied on the sale of goods in Switzerland and served as the direct predecessor to today’s VAT—Mehrwertsteuer (MWST) in German or Taxe sur la valeur ajoutée (TVA) in French.
Key Characteristics of WUST / ICHA
Predecessor to VAT
WUST/ICHA existed until 1995, when it was replaced by the VAT system. It focused on taxing goods but excluded most services.
Goods-Oriented
- Applied primarily to the sale of goods
- Services were not generally subject to the tax
Multiple Rates & Exemptions
- Included a range of rates and industry-specific exemptions
- Created inconsistencies and administrative complexity
Transition to VAT in 1995
The move from WUST/ICHA to MWST/TVA in 1995 was a major tax reform aimed at modernizing Switzerland's indirect taxation:
- Aligned Swiss tax law with European Union practices
- Extended taxation to services in addition to goods
- Created a more transparent and neutral system
- Simplified compliance for businesses
This transition marked a shift toward international standards and improved efficiency in tax administration.
Why It Matters Today
Although WUST/ICHA is no longer in effect, understanding it is important for:
- Legal and historical research
- Corporate due diligence involving legacy records
- Understanding the evolution of Swiss tax infrastructure
Related Services
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