VAT Switzerland – Calculation of Security for Foreign Companies
By Marc Nideröst, Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner
As of 1 August 2017, the security for a taxable person not resident or domiciled in Switzerland are calculated differently.
If a taxable person not resident or domiciled in Switzerland is not entered in the commercial register, a security needs to be provided in order to complete the registration for VAT purposes. This said security is usually paid in cash or by setting up a bank guarantee with a bank domiciled in Switzerland. Previously, the security generally corresponded to the amount of the annual tax expected to be payable. It usually amounted to at least CHF 5,000 and at most CHF 250,000.
As of 1 August 2017, the security will usually be calculated as follows (special cases reserved):
3% of the expected taxable domestic turnover (excl. exports), at least CHF 2,000 or a maximum of CHF 250,000
The new calculation method cannot be applied retroactively.
According to the revised Swiss VAT act that will come into force on 1 January 2018, the turnover threshold under which a person is exempt from tax liability is not limited to the turnover generated in Switzerland any longer. Therefore, foreign companies will need to register for VAT purposes in Switzerland if their global turnover reaches CHF 100,000 p.a. and part of that turnover has been generated locally in Switzerland.
As of 1 January 2019, a company based abroad supplying low-value goods to Swiss customers will be liable for Swiss VAT, if the turnover generated with such supplies reaches CHF 100,000 p.a.
Marc NideröstMattig-Suter & Partner, Altdorf, Brig, Schwyz, Zug, Switzerland
T: +41 41 819 54 00
Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner, in the Canton of Schwyz, has been conducting business since 1960 and employs around 90 staff in total. 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 its size means it has highly qualified specialists in all areas.
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.
Published: Winter 2017 l Photo: Frank - Fotolia.com