New rules on Swiss VAT for foreign companies operating in Switzerland

A partial amendment of Swiss VAT law entered into force on January 1, 2018, and has an impact on businesses not established in Switzerland.

As of January 1, 2018, foreign businesses pay Swiss VAT on their turnover generated in Switzerland if it generates at least CHF 100,000 worldwide.

Moreover, mail-order companies with a place of business abroad are treated the same as companies based in Switzerland. Under the new Swiss VAT law from January 1, 2019, if a mail-order company generates a turnover from so called small consignments (VAT less than CHF 5) of a minimum of CHF 100,000 per year, these consignments will be considered domestic deliveries and therefore liable to Swiss VAT.

If a non-established business in Switzerland fulfills the requirements for VAT liability, other than registering with the Federal Tax Administration, it also has to appoint a tax representative situated in Switzerland.

Experts of Andersen in Switzerland are at your disposal to provide further details, assistance and fulfill the role of VAT tax representative.