VAT in Switzerland
On January 1, 1995, Switzerland introduced its Value Added Tax (VAT) system. The regulations governing VAT in Switzerland are outlined in the “Federal Law on Value-Added Tax,” enacted on June 12, 2009. As Switzerland is not a member of the European Union (EU), its VAT law is not directly influenced by European VAT laws and judgments.
However, during the formulation of the current Swiss VAT legislation, there was a clear intention to align it with EU regulations, aiming for harmonization. Although national courts and agencies in Switzerland may consider EU regulations or rulings when interpreting national legislation, it’s important to note that certain Swiss laws differ from those of the EU.
Everything related to VAT in Switzerland is included in our comprehensive guide below.
Selling in Switzerland?
Switzerland – Scope of Taxation
The enforcement of Value Added Tax (VAT) in Switzerland applies across the whole nation, inclusive of customs enclaves, as stated in the Swiss Customs Law. This area is frequently known as the “Swiss territory”, “Inland”, or “territoire Suisse” in French. The regions covered by the Swiss territory for VAT implications include:
- Switzerland
- Customs and bonded warehouses at Swiss ports
- Principality of Liechtenstein
- Büsingen am Hochrhein, which is a German municipality.
In summary, VAT regulations apply to these specified areas within Swiss territory as defined by Swiss Customs Law.
Taxable persons include:
According to Article 10 of the Swiss VAT Law, a taxable person is defined as an individual or entity engaged in business activities, regardless of their legal structure, with the intention of generating a consistent income through the provision of goods or services. This definition encompasses the following criteria:
- Involvement in professional or commercial transactions.
- Aim to earn a sustainable income through the supply of goods or services under one’s own brand and independently.
- Activities should not be of a temporary nature, but rather conducted on an ongoing basis.
- Involvement in the manufacturing of goods and/or services intended for global sales.
- If materials are utilized, the completion of the task is solely undertaken by the taxable company, assuming the associated risks as an entrepreneur.
Download the Swiss VAT Guide
Switzerland – General VAT information
| Tax authority | Federal Tax Administration |
| VAT in local language | Mehrwertsteuer (MWST), Taxe sur la valeur ajoutée (TVA), Imposta sul valore aggiunto (IVA) |
| Currency | CHf Swiss Franc |
| VAT number format | CHE-123.456.789 MWST |
| CHE-123.456.789 MWST | |
| VAT rates
|
Standard 7.7%; Reduced 2.5%; and 3.7% |
| Zero-rated (0%) and exempt | |
| Thresholds
|
|
| Registration | |
| Established | CHF 100,000 |
| Non-established | CHF 100,000 |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | CHF 100,000
|
| VAT Group | Available – it is permissible for eligible entities to form a VAT group, where they are considered as a single taxable person for VAT-related matters |
| Voluntary Registration | Allowed |
| Intra-EU Dispatches | N/A |
| Intra-EU Arrivals | N/A |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Returns | Last day of the month following the end of the period |
| Frequency | Monthly and Quarterly |
| European Sales Listing | Not Allowed |
| Intrastat | Not Allowed |
| Electronic Invoicing | Optional for B2C B2B transactions. Mandatory for supplies made to the federal administration with a contract value of 5,000 francs or greater. |
Last Updated: 09/08/2023
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