DE | EN
Back to overview

Swiss VAT: Declaration requirements for foreign enterprises generating turnover in Switzerland

The Swiss Federal Tax Authority (SFTA) has issued the final version of the VAT-Information brochure no. 22 regarding foreign enterprises. This publication describes the practice of the SFTA in connection with enterprises that are resident outside of Switzerland but provide goods or services in Switzerland.

| Christian Maeder, Benno Hinni

Since the beginning of 2018, foreign enterprises with a worldwide turnover of CHF 100,000 or more have to pay VAT on their goods and services provided in Switzerland (unless exempt from VAT). Such enterprises are required to apply for the registration in the Swiss VAT-register. The applicable Swiss VAT should be included in their invoices for goods and services provided in Switzerland, and the respective VAT should be paid to the SFTA. Furthermore, such enterprises need to appoint a tax representative in Switzerland and usually have to deposit a security with the SFTA.

To improve compliance processes, foreign enterprises may declare only the Swiss turnover in the VAT declarations and not the worldwide turnover. However, if foreign enterprises may file a claiming for repayment of input VAT, the SFTA may also ask for further information regarding turnover generated outside of Switzerland.

A foreign enterprise is not subject to VAT in Switzerland if it only renders certain services that are deemed to be performed at the place of residence of the recipient (e.g., advisory services by a foreign attorney to a client resident in Switzerland). In such cases, the reverse charge procedure may be applicable.

Our tax advisors would be happy to support with any further questions you may have regarding this topic.

Christian Maeder
Attorney at Law, Certified Tax Expert
[email protected]
Benno Hinni
Attorney at law, Certified Tax Expert
[email protected]

More news & Articles

Taxation of Asset Tokens in Switzerland

There is a well-established practice in Switzerland regarding the taxation of cryptographic tokens in general and asset tokens in particular. The Swiss Federal Tax Authorities SFTA and cantonal tax authorities published this practice in several working papers, fact sheets, information sheets and otherwise. The basic principles of the taxation of asset tokens in Switzerland are summarised below.
Continue reading

Relocation of the debtor to a neighbouring country: Cross-border enforcement of claims in the relationship between Switzerland and Germany

Invoices that are not being paid, or failure to comply with payment reminders, is extremely frustrating for creditors in both Switzerland and Germany. For this reason, both the Swiss and German legal systems offer creditors a simple and efficient way of enforcing their claims: in Switzerland through debt enforcement and in Germany through dunning procedures.
Continue reading

Foreign Nationals Living in Switzerland

Immigration to Switzerland from abroad, especially from our neighbouring countries; Germany, Italy and France, remains high. It is unlikely that this trend will abate in the near future, not least because of the high demand of skilled workers. As a result, the need for advice on matrimonial and inheritance matters having an international dimension - whether due to bi-national marriages, the death of a foreigner living in Switzerland or having assets abroad - is constantly increasing.
Continue reading

The Effectiveness of Forfeiture Clauses in Dispositions Upon Death

Experience has shown that inheritance is a particularly emotional matter. If one wants to avoid unnecessary disputes and not create additional ambiguities, it is recommended not to use standard, formulaic forfeiture clauses, but to examine in each individual case whether such a clause makes sense and, if necessary, to tailor it to the case.
Continue reading

Taxes and Social Security Contributions of Foreign Board Members of Swiss Companies

Board members of Swiss companies have to deal with different issues regarding taxes and social security contributions if they have their domicile outside of Switzerland. Regarding taxation, the corresponding double tax treaties will be applicable. If the board member is a citizen of the EU, the applicable social security system will be determined in accordance with the Agreement on the Free Movement of Persons between the EU and Switzerland.
Continue reading