VAT obligation for foreigners in Switzerland?

If a foreign company generates revenue in Switzerland, it can become liable for value-added tax (VAT). If the company becomes liable for VAT, Swiss legislation requires the appointment of a fiscal representative in Switzerland. In this case, the representative grants the domicile to the company.

In principle, in Switzerland, every company becomes subject to tax according to Art. 10 Para. 2 of the VAT Act if it generates more than CHF 100,000 in revenue from taxable income. The revenue is calculated based on the turnover, minus the taxes. If a foreign company becomes liable for VAT, it must be represented by a person based in Switzerland (the so-called fiscal representative) before the fiscal authorities. The duties of the fiscal representative include representing the company with all its rights and obligations concerning VAT. To secure the claims of the Federal Tax Administration, the tax-liable company is also required to provide a security deposit, which is calculated based on the expected annual turnover. (see blog post)

When the company becomes liable for VAT, it is entered into the register of VAT liable entities, receives a VAT number, and is required to file quarterly VAT returns. The fiscal representative handles the filing.

In addition to the correct handling of value-added tax, having a fiscal representative brings other advantages. For one, it reduces the administrative effort associated with the entire registration process, and on the other hand, it significantly speeds up the import of goods from abroad.

Our experts are pleased to advise you on all matters relating to VAT liability and fiscal representation. Calculate your quote online and schedule a consultation.