Vendors supplying low-value goods to the Swiss territory from outside Switzerland will be subject to Swiss VAT registration and payment, if their revenue generated in Switzerland exceeds the annual CHF 100.000 threshold. The purpose of this measure is to ensure equal competitiveness with local suppliers. It should also be noted that suppliers with global revenues exceeding CHF 100,000 will be subject to Swiss VAT starting January 2017.
Considering the major changes in the Swiss VAT Law, foreign suppliers and companies domiciled in Switzerland as well as branches with foreign activity will have to take some precautions, in particular:
– to verify whether they are obliged to register for Swiss VAT under the new regulations.
– if so, to adjust their internal processes, in particular IT, customer/supplier master data and end-consumer prices (if necessary).
Experts say that the revised Swiss VAT Law will increase the number of registrations, primarily for foreign non-established companies as well as for some established entities.
If you are not sure whether your company in Switzerland is subject to VAT starting next year, do not hesitate to send us an inquiry to [email protected]
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.