VAT obligations for foreign sportsmen in Switzerland
By Marc Nideröst, Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner
Foreign sports competitors and sports clubs are liable for Swiss VAT and must register for VAT purposes in Switzerland if they receive appearance fees, prize money or the like for sports competitions in Switzerland. If they are registered for Swiss VAT, they also have to tax and declare their sales of merchandise in Switzerland and the income from Swiss sponsors or other advertising revenue, as well as sales of broadcasting rights.
Since 2018, the threshold for mandatory VAT registration is determined according to worldwide sales, not only sales in Switzerland. For this reason, sports competitors and sports clubs located outside of Switzerland have to register for Swiss VAT if they receive appearance fees or prize money for competitions in Switzerland and have worldwide sales of CHF 100,000 or more (CHF 150,000 for non-profit and voluntarily administered sports clubs). Foreign organisations liable for Swiss VAT are required to have a tax representative with a domicile in Switzerland. They must also provide security when they are entered in the Swiss VAT register. The security amounts to 3% of expected taxable domestic sales with a minimum of CHF 2,000 and a maximum of CHF 250,000.
If athletes and sports clubs receive only appearance fees or prize money for competitions in Switzerland and have no sales of merchandise in Switzerland nor sales of other services (income from Swiss sponsors or other advertising revenue in Switzerland or sales of broadcasting rights, etc.), they can ask the Swiss organiser of the competition to file and to pay the VAT due via a simplified procedure, without a VAT registration of the athlete or the sports club. If the simplified procedure is applied, there is no right to deduct or ask for a refund of input VAT.
The form to file for this option is located here: www.estv.admin.ch
Marc NideröstGGI member firm
Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner
Auditing and Accounting, Tax, Advisory, Corporate Finance, Fiduciary and Estate Planning
Altdorf, Brig, Pfäffikon SZ, Schwyz, Zug, Zurich, 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 and 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: Indirect Taxes Newsletter, No. 12 Autumn 2021 l Photo: renepfluger - stock.adobe.com