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VAT registration changes in Switzerland

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The Swiss Houses of Parliament have revised the VAT legislation on 29th September 2016.

Until now, a foreign company had the obligation to register for VAT in Switzerland, as soon as its taxable transactions in Switzerland reached 100,000 CHF (approximately €85,000).

As of 1st January 2018, this threshold of 100,000 CHF will apply to the global turnover of the company. From the first euro in Switzerland, if your global turnover exceeds 100,000 CHF, you will be subject to the Swiss VAT.

This change in the Swiss regulations will have a significant impact on the many companies carrying out taxable transactions in Switzerland, or wishing to develop there.

Indeed, the country estimates that nearly 30,000 foreign companies will have to register for VAT as of 1st January 2018.

When filing out your declarations, it is important to indicate in which country the services or/and goods are provided.

Other changes in Swiss legislation

On 29th September 2016, the Swiss Houses of Parliament revised the VAT legislation. As a result, apart from the VAT identification threshold, several other changes have been implemented:

  • VAT will be applied on e-books and online medias at a 2,5% rate
  • VAT for selling artworks and antiquities will change
  • additionnal services in the insurance sector (like those linked to social welfare and professional formation services) will be exempt from Swiss VAT

Amended Swiss VAT rates

Changes have also been provided for VAT rates in application in Switzerland and will come into force as of 1 January 2018.

Old rate New rate
Normal rate 8.0 % 7.7 %
Reduced rate  2.5 % 2.5 %
Special rate for lodging sector 3.8 % 3.7 %

Source : Swiss Confederation website 

For example, here are the changes in the retail business  :

Applicable VAT from the 01/01/2011 until 12/31/2017  from 01/01/2018
Normal rate 8.0% 7.7%
Reduced rate  2.5% 2.5%
Special rate 3.8% 3.7%

If you need more information about VAT, take a look at our e-service So Posting Worker (FR) which will answer your questions.

ASD Group, your preferred expert contact in international development, VAT and international taxes, customs operations, social regulations and business strategy.

ASD Group works for you using the latest software technologies available and the advanced skills of our teams. Contact us for more information!

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