VAT (vALUE-aDDED tAX)

Businesses are liable to VAT irrespective of their legal form.
In principle, businesses that supply goods or services in Switzerland are liable to pay VAT on all turnover in Switzerland.

Businesses based in Switzerland

  • If the annual turnover from taxable supplies generated in Switzerland and/or abroad is less than CHF 100,000 (CHF 150,000 for charitable institutions and non-profit-oriented sports and cultural associations), the business is exempt from VAT.
  • Businesses that only supply goods or services in Switzerland that are exempt from VAT (e.g. medical treatments, educational services) do not have to register for VAT.

NGO’S setting up in Switzerland are under the impression of being exempt from VAT. This needs to be clarified, especially when it comes to paying VAT on imported services, like consultants on projects abroad. They have to be declared to the VAT authorities on an annual basis if services of over CHF 10,000 per annum are imported.

Businesses based abroad

  • Businesses that only supply goods or services in Switzerland that are zero-rated under VAT (e.g. exports) are not liable to pay VAT.
  • Businesses that only supply goods or services in Switzerland that are exempt from VAT (e.g. medical treatment, educational services) do not have to register with VAT. This also applies if, in addition to supplying goods or services that are exempt from VAT, they also supply goods or services that are zero-rated under VAT.

International businesses with Switzerland

On 1 January 2018, the VAT law has changed in Switzerland. If your global turnover exceeds CHF 100,000 you will have to register for Swiss VAT no matter how small your Swiss turnover is. Source: pwc.ch

Find out if you need to register for Swiss VAT:

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