- Foreign businesses providing digital services to customers in Switzerland may be subject to Swiss VAT, depending on the service qualification, place of supply, and registration requirements, particularly if their worldwide turnover exceeds CHF 100,000 from taxable services in Switzerland.
- Electronic services, such as cloud offerings, streaming, and apps, must be clearly defined to determine the correct VAT treatment, with the place of supply typically being the recipient’s location in Switzerland for B2C transactions, while B2B transactions may involve reverse charge liability for Swiss recipients.
- Non-compliance with Swiss VAT regulations can result in significant financial exposure, including retroactive assessments and penalties; however, B2B providers can mitigate risks through proper documentation and ensuring Swiss customers self-assess acquisition tax, with RSM Switzerland offering support for compliance and registration processes.
Source RSM
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