Swiss VAT Representation – Bookkeeping Essentials

Foreign Companies

Foreign taxable persons without a domicile or place of business on Swiss territory must appoint a representative to perform their procedural obligations who has his domicile or place of business on Swiss territory. A natural person or legal entity with a place of residence or business in Switzerland is recognised as a tax representative. As such, the representative does not necessarily need to be a fiduciary, a lawyer or a member of a specific occupational group; it can also be a private individual. An online registration without the appointment of a Swiss tax representative is not possible.

Who becomes liable to VAT in Switzerland ?

As of 1 January 2018, all companies that are domiciled in Switzerland or that provide supply of goods or supply of services in Switzerland will become liable to VAT, if they generate a worldwide turnover of at least CHF 100 000 p. a. resulting from taxable or zero-rated supplies.
Whoever carries on a business, i.e. independently performs a professional or commercial activity with the aim of sustainable income from supplies and acts vis-à-vis other persons under his own name is in principle liable to tax. This also applies to companies based abroad which operate in Switzerland.
Whoever generates an annual turnover of less than CHF 100 000 from taxable or zero-rated supplies is exempted from tax unless he or she waives exemption from tax liability and enters voluntary in the register of taxable persons.
More detailed information on tax liability in the case of value added tax can be found in this downloadable PDF-file.
Companies domiciled abroad which exclusively provide supplies that are tax exempted or supplies of services subject to reverse charge on Swiss territory are – among others – exempt from tax liability.
For any further queries, please do not hesitate to contact us.
VAT and the mail-order trade
Federal Office for Customs and Border Security (FOCBS)