Register for VAT in Switzerland
Expanding your e-commerce into Switzerland? Navigate Swiss VAT effortlessly with our expertise in local tax rules for a seamless market entry.
About J&P
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Swiss VAT
In Switzerland, the Value Added Tax is referred to as Mehrwertsteuergesetz (MWST).
Currently, the standard VAT rate is 8.1%, expected to revert to the previous 7.7% by 2030.
Unlike in other countries, not all businesses in Switzerland are mandatory to register for VAT.
However, once registered, strict adherence to Swiss tax regulations is essential, with potential fines reaching up to 800,000 Swiss Francs.
Swiss VAT Rates
- Standard VAT Rate – 8.1%: Most taxable goods and services
- Reduced VAT Rate – 3.8%: Hotel accommodations (including hotel breakfast)
- Reduced VAT Rate – 2.6%: Food and beverages (excluding hotel supplies), medications, non-advertising newspapers, books
- Zero Rate – 0%: Health services, education services, financial services, etc.
Who Needs to Register for VAT
If you provide taxable goods and services locally, engage in remote sales to Switzerland, or offer electronic services, VAT registration is necessary.
For local companies, businesses with an annual turnover exceeding 100,000 Swiss Francs must register for VAT and pay taxes.
This requirement also applies to non-resident companies, requiring them to appoint a fiscal representative as mandated by Swiss authorities.
Non-EU businesses seeking VAT refunds must adhere to reciprocal agreements.
Compliance with Swiss VAT Rules
If conducting business activities in Switzerland, strict adherence to the country’s VAT regulations is imperative.
- Maintain Records: Keep and maintain financial records for at least 10 years.
- Invoice Requirements: Report detailed information in compliance with federal VAT regulations and prepare invoices accordingly.
- Proper Use of Invoices: If agreed upon with the customer, electronic invoices must bear the correct signature.
- Foreign Exchange Rates: Use exchange rates approved by the authorities.
Additionally, timely submission of declarations and payment of taxes is crucial, as failure to comply or evidence of fraudulent activities may result in fines of up to 800,000 Swiss Francs.
