What is fiscal representation and when do I need it?

Fiscal representation is a tax representative for foreign companies that become tax liable in Switzerland. It is mandatory for companies without a Swiss domicile that invoice VAT or have other tax obligations there.

Fiscal representation is an important instrument for international business relationships with Switzerland. Here is a comprehensive explanation:

Definition and legal foundations:

What is fiscal representation?

• Tax representative: Person or company that represents foreign firms to Swiss tax authorities
• Legal representation: Power of attorney for all tax matters
• Compliance assurance: Adherence to all Swiss tax laws
• Communication interface: Connection between foreign company and authorities
• Liability protection: Professional handling of tax obligations

Legal basis:

• VAT Act (VATA): Art. 63 regulates fiscal representation
• VAT Ordinance (VATO): Detailed provisions
• Federal Direct Tax Act (FDTA): Rules for income and profit taxes
• Cantonal tax laws: Local specificities
• International agreements: Double taxation treaties to observe

When is fiscal representation mandatory?

VAT registration:

• Revenue threshold: CHF 100,000 annual turnover in Switzerland
• Service provision: Services for Swiss customers
• Goods deliveries: Import/export business
• Events: Events and trade fairs in Switzerland
• Digital services: Online services for Swiss consumers

Direct taxes:

• Permanent establishment: Physical or economic presence
• Real estate ownership: Land or buildings in Switzerland
• Withholding tax: On dividends, interest or royalties
• Construction work: Building projects beyond certain duration
• Employee secondment: Staff for more than 90 days

Types of fiscal representation:

VAT fiscal representation:

• Full representation: Complete VAT handling
• Registration representation: Only for registration
• Settlement representation: Periodic VAT returns
• Refund representation: Input tax refunds

Direct tax fiscal representation:

• Profit tax representation: For corporate profits
• Withholding tax representation: On capital income
• Anticipatory tax representation: Refund on interest/dividends
• Real estate gains tax representation: On property sales

Requirements for fiscal representatives:

Personal requirements:

• Swiss residence: Or establishment in Switzerland
• Professional qualification: Tax expertise required
• Good reputation: Integrity and reliability
• Financial security: Ability to be liable for tax debts
• Professional liability insurance: Comprehensive insurance coverage

Business requirements:

• Swiss company: Ltd, LLC or other legal form
• Local management: Operational management in Switzerland
• Infrastructure: Office and administrative capacities
• Compliance system: Internal controls and processes

Tasks and responsibilities:

Administrative activities:

• Registration: Registration with tax authorities
• Returns: Regular tax declarations
• Payments: Timely settlement of tax debts
• Correspondence: Communication with authorities
• Archiving: Proper record keeping

Advisory services:

• Tax planning: Optimization of tax burden
• Compliance advisory: Adherence to all regulations
• Risk analysis: Assessment of tax risks
• Structural advisory: Optimal business structure
• Updates: Information on legal changes

Fiscal representation at Findea.ch:

We offer comprehensive fiscal representation services:

• VAT registration: Complete registration and handling
• Ongoing support: All returns and payments
• Compliance assurance: Adherence to all regulations
• Advisory: Tax optimization and structural consulting
• Transparent pricing: Fair and understandable cost structure

Advantages of professional fiscal representation:

• Legal certainty: Full compliance with Swiss tax law
• Time savings: Professional handling of all formalities
• Cost efficiency: Cheaper than own Swiss establishment
• Expertise: Current knowledge of tax laws
• Flexibility: Scalable solution according to business development

Common use cases:

E-commerce companies:

• Online sales: To Swiss customers
• VAT registration: From CHF 100,000 turnover
• Input tax refund: On Swiss purchases

Service companies:

• Consulting: Services for Swiss clients
• IT services: Software and digital services
• Events: Occasions in Switzerland

Conclusion: Fiscal representation is essential for many foreign companies to operate legally and efficiently in Switzerland. Professional providers like Findea.ch ensure compliance and cost efficiency.