Switzerland

Switzerland

The small enclave in the midst of the larger EU – inside yet outside. The country has chosen to remain outside the European Union, but it continues to be an exciting market for European companies due to the free trade agreement with EU countries and its very low VAT rate of only 7.7%.

The country is known for its direct democracy, low tax burden, and magnificent nature. Furthermore, Switzerland is a wealthy society with highly educated and affluent citizens.

Learn more about the Swiss market here or contact us for more information.

Despite agreements with the EU regarding freedom of movement, including the elimination of personal checks at the borders as part of Switzerland's participation in the Schengen Agreement, goods are still subject to border controls as Switzerland has not entered into a customs agreement with the EU.

If you, as a foreign company, wish to sell goods or services in Switzerland, you will need a Swiss-registered representative to handle VAT and customs on your behalf, as it is not allowed to do it yourself.

IntraVAT can assist you with this! With many years of experience and a deep understanding of the requirements your company must meet to conduct business in the country, we offer our expertise along with local physical business address services, handling of physical mail, quarterly VAT reporting, and general monitoring of your Swiss activities in compliance with regulatory requirements.

When should you register for VAT in Switzerland?

Your company should register for VAT in Switzerland if you have turnover with a VAT-liable place of supply in Switzerland that exceeds the registration threshold of CHF 100,000. Both sales in Switzerland and exports from Switzerland count towards this threshold. Companies outside of Switzerland must appoint a fiscal representative in Switzerland to become VAT registered.

It is important to submit a request for VAT registration within 30 days of commencing your VAT taxable activities to avoid penalties.

The sale of goods located in Switzerland at the time of sale, as well as the import of goods into Switzerland for the company's own use or in its own name, have a VAT-liable place of supply in Switzerland.

The sale of services to private individuals, as well as services related to art, culture, sports, science, education, or entertainment, including services related to real estate in Switzerland or passenger transport, have a VAT-liable place of supply in Switzerland.

It is possible to voluntarily register for VAT if your company has not reached the CHF 100,000 registration threshold.

After January 1, 2025, as a regular e-commerce company, you will only need to be VAT registered in Switzerland if you import goods and place them in your own name on the local market. After this date, Online Marketing Platforms (such as Amazon or Zalando, etc.) will be required to be VAT registered in Switzerland for sales of goods into Switzerland to local private individuals.

The following documents are required for VAT registration in Switzerland:

• A completed application form
• A copy of the company's registration certificate from the Commercial Register
• Information about the address of the fiscal representative
• Information about the nature and scope of the company's sales in Switzerland

VAT must be reported on a quarterly basis in Switzerland, but it is possible to request monthly reporting if preferred.

Please note that import VAT cannot be paid via your VAT return in Switzerland. Import VAT must generally be paid at the border, which means that the authorities issue a "cash invoice" sent to the fiscal representative, even though the payment deadline is very short, only 10 days.

Therefore, an import credit is a significant advantage when importing into Switzerland. With such a credit agreement, you will receive:

60 days of credit to pay the import VAT, although the customs amount still needs to be paid within 5 days
Waiver of administration fees and disbursement charges
Option to receive cash invoices by email, which is a major advantage due to the short payment deadlines.

IntraVAT is happy to assist you with VAT registration, fiscal representation, and setting up customs credit. Contact us for assistance.

Deadlines

VAT rates as per 2023

VAT rates as per 2024