Switzerland is not a member of the European Union and trades in the Swiss Franc. However, the country has adopted some aspects of EU law and participates in the EU’s single market.
VAT rates in Switzerland
The standard rate of VAT is 8%, and reduced rates of 2.5% and 3.8% are available.
VAT registration in Switzerland
The VAT registration limit in Switzerland is CHF 100,000 for both established and non-established businesses.
There is no VAT limit on distance sales in Switzerland.
The format for a VAT identification number is: 123456 or CHE 123 456 789 MWST. Every company must hold a number like this in order for accurate taxation.
VAT returns must be submitted quarterly and annual returns are not required.
Are there any Intrastat thresholds in Switzerland?
No. There are no applicable Intrastat thresholds in Switzerland.
VAT recovery in Switzerland
Is VAT recovery permitted for non-established non-EU businesses?
Yes, but only when a reciprocity agreement is in place.
Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is not permitted if it relates to private use or non-business.
Reverse charge applies to the majority of cross border services.
Requirements and regulations in Switzerland
Any company established outside of Switzerland must appoint a tax representative to register for VAT in the country.
Use and enjoyment rules do not apply in Switzerland.
The period of VAT recovery by tax authorities has a timescale of 5 years. VAT deductions and refunds also have a period of 5 years.
Please contact us for further information about paying taxes in Switzerland, and a member of our team will be happy to help you.