Company cars for frontier workers - Look out!
A new regulation may lead to significant financial losses when employees drive their business vehicle abroad.
Due to a new decree, from 1 May 2015 it is prohibited to drive privately in the EU customs territory with a vehicle redeemed in Switzerland. This can cause big trouble particularly for companies that allow their frontier workers the private use of a company car.
It therefore suggests itself to limit the use of the vehicle to business trips and to the travel from/to home. If the private use was agreed contractually, possibly a corresponding wage replacement is owed until a possible amendment of the treaty enters into force.
If one uses the company car still for private trips in the EU customs territory and is caught, the vehicle must be cleared through customs (10%), also the import tax of the country does accrue (DE 19%, FR / AT 20% IT 22%). Until everything is cleared the vehicle can be confiscated.
More here: www.ezv.admin.ch