E-Commerce & B2C Services in Switzerland
When a company that has registered for VAT in Switzerland provides goods or services located within the country, the VAT is typically levied by the provider and remitted to the Federal Tax Administration (FTA) and charge VAT to your Swiss customers. This is because the place of supply for VAT purposes of electronic supplies to Swiss consumers is considered to be Switzerland. The VAT rate in Switzerland is 7.7%.
Read more about B2C services & E-Commerce in Switzerland in our comprehensive guide.
B2C/B2B Services in Switzerland
For electronic supplies provided to Swiss consumers, the Value-Added Tax (VAT) location is considered to be Switzerland. Consequently, foreign suppliers of such services might have to register for Swiss VAT, and compute and pay the local VAT. Companies that are VAT registered with e-Services need to pay attention to the following compliance aspects:
- Companies registered for VAT abroad must designate a local financial representative.
- The tax authorities may require a bank guarantee.
- Business-to-business (B2B) sales are exempt from VAT under reverse charge rules. Nevertheless, the seller is required to verify the Swiss customer’s VAT number via the online UID register.
- VAT returns are to be filed on a quarterly basis.
- Switzerland began imposing VAT on digital or electronic services in 2010. The e-services that are subject to VAT include:
- Broadcasting of television or radio
- Applications (Apps)
- Mobile phone and data services
- Downloadable content such as films and games
- Online gambling.
- Web hosting
- Software as a Service
Selling in Switzerland?
E-Commerce in Switzerland
E-commerce is flourishing and its expansion necessitates additional evolution in the domain of VAT legislation. These regulations are crucial for enterprises located outside of Switzerland that dispatch goods into the country.
Despite some resemblances between Swiss and EU VAT laws, there are notable distinctions because Switzerland is not an EU member.
The key difference, specifically in the context of mail order, is that the distinction between B2B (Business to Business) and B2C (Business to Consumer) as well as the Incoterms have no bearing on how VAT is handled in Switzerland.
Global VAT Compliance is up to date with all new rules & regulations and provides VAT/GST solutions to companies offering digital services worldwide. Contact our VAT experts for an assessment for your business.
Last Updated: 09/08/2022
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
