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VAT
Table of Contents
Table of Contents

Actual taxation principle

The tax is calculated on the payment actually received. Unlike income taxes, VAT is not due at the time the service is provided, but only when payment is received.

EORI registration

Anyone who carries out activities relevant to customs law, in particular the import of goods, must opt ​​for one Register EORI number. This serves to identify those involved for customs clearance in the European Union.

Registration requirement

Companies that achieve global sales of more than 100.000 Swiss francs must register for tax purposes in Switzerland if they carry out sales there that are not covered by the purchase tax.

All Swiss companies with an annual turnover of at least 100.000 CHF are also subject to tax. Domestic companies that have lower sales can register voluntarily.

VAT Switzerland

Switzerland's VAT is applied to all services and items delivered domestically. As domestic, in addition to the national territory of the country, also:

  • the Principality of Liechtenstein
  • the German enclave Büsingen on the Upper Rhine
  • the Italian enclave Campione d'Italia with special regulations
  • the Sampour and Samnaun valleys, which are not part of the Swiss customs territory

Swiss companies with an annual turnover of less than 100.000 CHF can either be exempt from tax liability or voluntarily subject themselves to VAT.

Registration and fiscal representation

A foreign company that operates and is subject to tax in Switzerland and does not have a permanent establishment there must be represented by a tax representative based in Switzerland. This assumes the obligations of the foreign company subject to VAT in Switzerland, with the exception of liability for tax debts and their payment.

The tax representation is the contact person for the tax administration and is responsible, among other things, for the declaration of VAT, timely payment and storage of receipts at your domicile. As part of registration, Switzerland requires a security deposit. The amount of the security is 3% of the expected annual taxable domestic turnover, but at least CHF 2.000 and maximum CHF 250.000. Security can be provided as follows:

  • Cash deposit
  • Guarantees
  • Bank guarantee
  • Mortgage notes and mortgage bonds;
  • cash value life insurance policies;
  • listed Swiss franc bonds from Swiss debtors or
  • Medium-term bonds from Swiss banks.

VAT declaration in Switzerland for foreign entrepreneurs

Since 2020, foreign companies registered in the VAT register have been able to forgo declaring their entire worldwide sales and only declare the sales generated in Switzerland in their typically quarterly declarations. The VAT to be paid can be offset against the input taxes that were invoiced to the entrepreneur in Switzerland. The payment is irrelevant in this respect. In addition, import sales taxes paid and purchase taxes paid can be deducted.

customs regulations

Customs duty must generally be paid when importing goods from a third country. The amount depends on the goods number (TARIC code or code number). When importing goods, a tariff preference can be claimed under certain conditions. The requirements for exemption are largely based on the intended use of the goods. An invoice and a packing list are required for customs clearance.

Reimbursement of Swiss input tax

Anyone who is not subject to VAT in Switzerland but has paid VAT on deliveries and services there can have this refunded. However, buyers must spend at least 300 CHF including Swiss VAT. Switzerland does not grant tax refunds for goods with a lower value. To get the tax back, visitors must present the “Travel Export Document” form at the customs counter upon departure and have it stamped by customs officials. To do this, it is necessary to leave Switzerland via an open customs office.

VAT tax rate in Switzerland

The regular tax rate is 7,7%. The accommodation industry is taxed at 3,7%. There is also a reduced tax rate of 2,5%

  • Food
  • tap water
  • Daily use products
  • Non-alcoholic drinks
  • newspapers and magazines
  • Plastics, metals
  • plants
  • Seeds and bulbs
  • Books
  • drugs
  • Entrance tickets to cultural events and sporting events
Jürgen Bächle
Jurgen Bachle

has been working as an independent tax consultant and expert in international tax law since 1989 and has been a member of the board of the German Association of Tax Consultants Baden-Württemberg, DSTVBW, for over 20 years.

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