- Foreign companies supplying goods or services to Swiss clients must register for Swiss VAT if annual turnover exceeds CHF 100,000, regardless of physical presence.
- The Swiss VAT Act applies to digital services, online platforms, and physical products, with specific rules on what constitutes goods versus services.
- Invoices must show Swiss VAT rates: 8.1% standard, 3.8% for accommodation, and 2.6% for reduced-rate items; input VAT can be deducted by registered companies.
- Non-compliance can lead to penalties, back taxes, and interest, making timely registration and accurate record-keeping essential.
- The rules aim to ensure fair competition, transparency, and proper tax contributions from foreign companies, especially as e-commerce grows.
Source: ggi.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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