FAQ Fiscal representation VAT

At the request of the recipient, the supplier must issue formally correct invoices (Art. 26 para. 1 VAT Act). These must contain the following elements (Art. 26 para. 2 VAT Act):

1. name and address of the supplier
2. VAT number of the supplier
3. name and address of the recipient
4. date or period of the supply
5. nature, object and extent of the supply
6. the consideration for the supply
7. applicable VAT rate and VAT amount

There is no legal obligation to refer to the reason for tax exemptions (e.g. export) or to acquisition tax (“reverse charge mechanism”) in the invoices.

Paper, electronic and digital invoices (e.g. PDF invoices or scanned paper invoices) are treat-ed equally for VAT purposes.

Receipt slips for amounts up to CHF 400 (including VAT) do not have to contain any information about the recipient of the supply. The same applies to coupons from cash registers.

A supply of services is any supply that is not a supply of goods. Supply of goods means:

• the transfer of the power to dispose of a good commercially in one’s own name;
• the delivery of a good on which work has been performed, even if the good is not altered by the work, but only tested, calibrated, regulated, checked for its function or has been treated in another way;
• making a good available for use or exploitation.

Compared to the EU, the definition of a “supply of goods” is in Switzerland much broader. The processing does not necessarily have to lead to a change in the object in order to constitute a supply of goods. The extent of the processing is irrelevant. For example, the installation of software at the customer’s premises, painting work on a building, assembly of a machine or even mere cleaning services qualify as a supply of goods.

Also unlike in the EU, the rental of goods qualifies as a supply of goods (and not as a supply of services).

If a foreign company registers for VAT purposes in Switzerland, services with place of supply at the recipient’s location (e.g. consulting services, online support, marketing services, etc.) to recipients established / domiciled in Switzerland are also subject to Swiss VAT (“force of at-traction”); see also section 6 below.

In Switzerland, many supplies qualify as “supplies of goods ” that qualify as “supplies of ser-vices” in the EU (see section 2 above).

The supply of the following services, among others, is subject to VAT in Switzerland if the worldwide turnover is at least CHF 100,000:

• Services in close connection with a property located in Switzerland, e.g. activities of archi-tects, coordination or supervision of construction work, possibly interior decoration ser-vices, etc.
• Telecommunication and electronic services to recipients in Switzerland who are not subject to VAT (B2C), e.g. downloading software, hotline, etc.

The tax liability arises when such a service is provided for the first time.

If a (domestic or foreign) mail-order company generates a turnover of at least CHF 100,000 per year from small consignments (goods value max. CHF 62 at tax rate 8.1% and goods value max. 193 at tax rate 2.6%) that it transports or dispatches from abroad to Switzerland, its supplies are deemed to be domestic supplies. As a result, it becomes liable for VAT in Switzerland and must be entered in the VAT register. The tax liability arises when the turnover limit of CHF 100,000 is achieved.

Platform taxation has been in force since 1 January 2025. Electronic platforms (regardless of whether they are domestic or foreign platforms) are deemed to be suppliers if they enable sup-plies by bringing sellers together with buyers to conclude contracts on the platform. Platform taxation can trigger the VAT liability of a platform.

Platform taxation applies exclusively to supplies of goods and not to supplies of services.

Yes, if a foreign company is registered in Switzerland for VAT purposes, it must also declare and pass on Swiss VAT on supplies of services that are taxable at the place of the recipient (e.g. consulting supplies) to a Swiss recipient (see also section 2 above). This is often forgotten.

In the case of invoicing based on agreed consideration, VAT liability arises upon invoicing (and not at the time of the supply).

There is no legal obligation to issue the invoice within a specific period after the supply has been provided.

The right to assess a tax claim expires five years after the end of the tax period in which the tax claim arose (under reservation of interruption actions).

Example:
X GmbH discovers on 2 July 2025 that the VAT for the 3rd quarter of 2019 was not declared correctly.

For the tax period 2019, the statute of limitations expired on 31 December 2024. The error from the 3rd quarter of 2019 can no longer be corrected.

No. The following conditions must be met for input tax deduction to be possible:

• VAT must have been invoiced;
• VAT must have been paid;
• The supply must have been purchased for the (own) business activity.

In simple terms, VAT shown on the invoice can generally be claimed as input tax (subject to tax avoidance offences). However, this principle only applies to domestic VAT. Import VAT can only be claimed as input VAT by the “correct” importer.

If a VAT liability exists, VAT registration is generally carried out retroactively to the start of the activity, i.e. with the first supply in Switzerland (limitation period of 5 years). In addition to the collection of the VAT debt, interest on arrears is also owed. If the state has not lost any VAT, e.g. because the Swiss customer has reverse-charged the VAT, the interest on arrears may be refunded.

Late registration constitutes a breach of a procedural obligation and can be penalised with a fine of up to CHF 10,000.

In principle, the recipient of goods is the “correct” importer. The place of suppply cannot be shifted by means of delivery terms (e.g. DDP).

If the supplier wishes to carry out the import in his own name, he can transfer the place of supply to Switzerland by means of the so-called “foreign subordination declaration”. In this case, the supplier is entitled to claim the import VAT as input VAT. As a result, the supplier becomes liable for VAT and must declare VAT on its turnover.

Since March 17, 2025, notification for short-term employment (up to 90 days) must be carried out via the EasyGov.swiss portal – the online counter for businesses. For the notification procedure, you must apply for a new UID with the company address abroad as part of the registration on the portal. The UID that was assigned to you as part of the VAT registration cannot be used for this purpose.

The Posting of Workers Act obliges foreign employers who send their employees to Switzerland to comply with the working conditions and wages stipulated in federal laws, federal council regulations, standard employment contracts and collective employment contracts that have been declared generally applicable. In industries or occupations without mandatory minimum wages, the local, occupational, or industry-standard wages must generally be observed.
It is advisable, before posting employees, to clarify whether a collective employment contract is applicable. For further information, please visit posting.admin.ch.