VAT representation in Switzerland
By Marc Nideröst, LL.M., Treuhand- und Revisionsgesellschaft Mattig-Suter und Partner
VAT payers domiciled outside of Switzerland have to furnish a security according to the VAT liability of one year. In addition, they have to appoint a VAT representative domiciled in Switzerland.
Enterprises doing business in Switzerland are liable and must register to the Swiss VAT, if the turnover in Switzerland is CHF 100’000 or more. But there are some kinds of business, which must not be taken in consideration:
- VAT exempted supply of services or goods (e.g. banking and insurance sectors, education, scientific research, etc.)
- Supply of services which are deemed to take place, where the recipient of the service has its domicile
- Supply of electricity by cable, gas by distribution network and long-distance heating to VAT payers registered in Switzerland.
The supply of contractual works in Switzerland (e.g. construction business, carpenters, etc.), the assembling of machines, the supply of services in relation with real estate property in Switzerland or the supply of telecommunication or electronic services to persons, who are not registered in Switzerland (e.g. private persons domiciled in Switzerland) may cause the duty to register to Swiss VAT.
Now, the Swiss parliament has approved a partial revision of the Swiss VAT law, which expands the duty of registration for enterprises domiciled outside of Switzerland. The threshold of CHF 100’000, which avoids the duty of registration, will be expanded to the business done inside or outside of Switzerland. This means, that enterprises doing business with Swiss clients in areas, which could cause the duty of registration (e.g. the supply of contractual works in Switzerland, the assembling of machines, etc.) must register to the Swiss VAT from the first CHF in Switzerland, if the entire business in or outside of Switzerland exceeds the amount of CHF 100’000. The partial revision come into force foreseeably from 1st January 2018.
Marc NideröstTreuhand- und Revisionsgesellschaft Mattig-Suter und Partner, Schwyz, Switzerland
Marc Nideröst LL.M. UZH International Tax Law / Swiss Certified Tax Expert / Graduate of Lucerne University of Applied Scienes in Economic and Business Administration Marc Nideröst is the Leader of the Tax consulting department at Treuhand- und Revisionsgesellschaft Mattig-Suter und Partner und has specialised during the last years in the area of taxation, in particular for regional, national and international enterprises as well as in the area of Value Added Taxation.
Treuhand- und Revisionsgesellschaft Mattig-Suter und Partner, Schwyz, has been conducting business since 1960 and employs around 90 staff altogether. The partnership provides market services in the areas of auditing, finance and accounting, tax consulting, business consulting and mediation as well as legal consulting and has highly qualified specialists in all areas thanks to its ideal size.
Published: November 2016 l Photo: Fotimmz - Fotolia.com