VAT Registration Switzerland - 2022 Procedure
VAT Registration in SwitzerlandUpdated on Wednesday 14th December 2022
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|We offer VAT registration services|| |
YES, we can help with VAT registration in Switzerland
|3.7% for tourism and hotel accommodation, 2.5% for medicines, books, newspapers|
|Who needs VAT registration in Switzerland||Local and foreign companies with a turnover of CHF 100,000, however, voluntary VAT registration is also possible in Switzerland|
|Time frame for registration||Approx. 4 weeks|
|VAT for real estate transactions|| |
Standard rate applies
|Exemptions available|| |
YES, property rental, healthcare, education, cultural activities
|Period for filing||Monthly or quarterly reporting is possible|
|VAT returns support||YES, we can help you file VAT returns in Switzerland|
|VAT refund||Refunds are available for purchases of minimum CHF 300 with rates between 3.8% to 6%|
|Local tax agent required||NO, however, one can be appointed|
|Who collects the VAT||Federal Tax Administration in Switzerland|
|Documents for VAT registration||Application form, company details (name, legal address), proof of meeting the VAT registration threshold (if applicable)|
|VAT number format||Country code CHE followed by a 9-digit code and letters MWST|
|VAT de-registration situations||Company ceases its activities, goes bankrupt, no longer meets the registration threshold|
VAT registration for foreign companies in Switzerland
- a copy of the commercial registration certificate;
- an application form;
- information about the company’s address in Switzerland;
- details about its Swiss turnover;
- information about the goods that are subject to VAT, the goods that are exempt from VAT, and those that can benefit from the VAT reverse charge.
The Swiss VAT registration process for local enterprises in 2022
- the name and the address of the company that is requesting to obtain a VAT number in Switzerland;
- the name and the address of the Swiss fiscal representative (if the applicant company is a foreign entity);
- the Swiss turnover of the foreign company which falls under the scope of the VAT registration in Switzerland;
- here, the company must specify if the taxable turnover refers to the supply of goods that is charged with the VAT during their import;
- the taxable turnover can also refer to the supply of goods that was not charged with the VAT when imported into Switzerland.
The value added tax in Switzerland
Tax rates in Switzerland
Who must apply for a Swiss VAT number?
- entities dealing with the import of goods and products into Switzerland;
- entities buying and selling goods on the Swiss territory;
- companies and other parties that sell goods to Swiss consumers on the internet;
- entities storing goods and products in Swiss warehouses;
- parties organizing events and shows at which the customers pay for an entry ticket.
Applying for a Swiss VAT number voluntarily
Mandatory registration for VAT in Switzerland
What are the basic taxes in Switzerland?
- starting with 2020, the Swiss corporate taxes available in the Swiss cantons will range from 12% to 14%;
- the personal income tax rate is charged at 40% in Switzerland;
- the value added tax is charged at a rate of 7,7%, but lower thresholds are available, as mentioned above;
- the social security tax rate is charged at 12% in the Swiss cantons;
- companies are also charged with the social security tax, but they have to pay a lower tax, of 6%.
What are the regulations for online retailers in Switzerland in 2022?
VAT compliance requirements in Switzerland
- one is required to issue invoices containing the VAT amount and its rate;
- specific VAT accounts and records must be prepared and kept at the company’s head office for at least 10 years.
- reporting periods are monthly or quarterly;
- payment must be followed within maximum 30 days.
Other VAT requirements to be considered by foreign companies in Switzerland
Foreign companies exempt from VAT registration in Switzerland
- a foreign business that uses a freight company or the postal service to deliver goods to Switzerland from abroad;
- a foreign company that does not render any services on Swiss soil because the Swiss client serves as the importer and the items are not processed there;
- a foreign business providing VAT-exempt services within the borders of Switzerland
- a company offering services in the fields of health care and treatment, education and training, and cultural services.
VAT compliance for foreign enterprises in Switzerland
- creating invoices that include the disclosure information required by federal VAT laws;
- issuing electronic invoices that have the recipient's proper signature;
- keeping up with accounts and records, that must be kept for a minimum period of 10 years.
Refund – one of the advantages of VAT registration in Switzerland
EORI registration in Switzerland