Taxes

Services that are exempt from tax under Article 21 of the VAT Act may be taxed voluntarily in order to deduct input tax. Certain sectors, such as insurance and gambling, are excluded from this option.

The value-added tax can be settled either regularly or simplified via the balance tax rate, which requires less effort and mainly helps small businesses. The balance tax rate must be applied for at the FTA and is not applicable to large companies with a turnover of over CHF 5,020,000.

As of January 1, 2014, uniform rates will be introduced in the withholding tax procedure and an electronic accounting system will be offered. The new rates apply nationwide and the e-accounting is optional.

Companies are subject to value-added tax if they generate income on a sustained basis; exceptions apply for revenues under CHF 100,000. Hobby activities are not subject to this obligation.

A domicile in Switzerland offers tax advantages and high legal security. Findea AG offers comprehensive domicile services in Lucerne, Zug, and Zurich.

From 2014, the Business Identification Number (UID) replaces the old six-digit VAT number in Switzerland. The UID law came into effect on January 1, 2011.

Swiss companies register for VAT in the EU to minimize trade barriers through tax-neutral deliveries. However, the registration process varies depending on the EU country.

There are significant VAT differences between Switzerland and the EU, including in the definition of supplies and services. Swiss companies must check tax liabilities and registration for foreign transactions and consider adjustments in general terms and conditions.

Foreign companies that become liable for value-added tax in Switzerland must appoint a domestic fiscal representative who declares sales and complies with value-added tax regulations. The fiscal representative also offers a domicile, but does not assume liability for tax debts.