VAT duty of foreign companies in Switzerland

Foreign companies who globally (abroad and in Switzerland) achieve more than CHF 100’000 turnover per annum, will be potentially subject to the Swiss Value Added Tax (VAT) beginning from 1 January 2018, if realizing turnover in Switzerland. Therefore, such companies will have to register and to report to the Swiss VAT authorities. Especially online providers are affected by this new law as well.

Despite of shipments with VAT of less than CHF 5 would be still VAT exempt, considering a global turnover of more than CHF 100’000 of the foreign company, such shipments will be subject to Swiss VAT. Theoretically, a foreign company could become subject to the Swiss VAT starting from a turnover in Switzerland of CHF 1.

We recommend foreign companies to analyse and clarify their potential Swiss VAT duty beginning from 2018 in a timely manner. Adaptions and adjustments in accounting, invoicing, sales price calculation, contracts, etc. are probable.

Our services include to provide your required Swiss VAT domicile as well as the necessary periodical filing of your Swiss VAT reporting.

For any questions in this regard do not hesitate to contact us.