legal experts indirect taxes
VAT plus GmbH is a Swiss based legal consultancy firm that is spezialised in VAT, customs law and international trade law. VAT plus focuses on foreign companies that have business activities in or that touch Switzerland and in that scope are looking for legal support in the field of indirect taxation and affiliate international trade law areas.
Due to its international background, VAT plus is familiar with the international setting in which foreign companies operate. VAT plus has a strong focus on compliance, i.e. enabling companies to meet their day-to-day indirect tax compliance.
VAT liability
The rules for Swiss VAT liability apply to domestic and foreign companies alike. Only in a very limited number of situations foreign companies are excluded from the standard regulation.
When performing in Switzerland supplies of goods or certain types of services, foreign companies that do not need to register or do not want to opt for registration should keep in mind that generally they cannot claim VAT refund (regulation for claiming VAT refund by foreign companies).
Planning
Swiss VAT compliance assumes planning. Regardless whether a foreign company acts as supplying or as buying party, the company must have timely knowledge about the correct Swiss VAT treatment. None-compliance with the rules causes additional costs and often frustrates customer relationships. Regularly, not sooner than when trying to file their Swiss VAT refund request foreign companies become aware that they do not entitle to refund and/or are liable for Swiss VAT.
By determining the correct VAT treatment before engaging in sales or buying contracts it can be prevented that Swiss VAT becomes a cost.
Invoicing
Invoicing with Swiss VAT is a privilege. Namely, only companies that have been assigned a Swiss VAT number are entitled to charge Swiss VAT. Companies that charge Swiss VAT although they do not have (yet) a Swiss VAT number can face liabilities that go beyond the tax amount only.
Foreign companies that think they are or may become liable for Swiss VAT must adopt their billing practice to Swiss VAT rules during the period that the Swiss VAT number has been applied for but not yet has been assigned.
Construction activities
Instruction work (without import of goods) can induce a Swiss VAT liability of a foreign company. A registration is necessary when the global threshold of CHF 100’000 turnover is exceeded.
Architectural services
Architecture type services, including interior design, rendered by a foreign company in connection with real estate located in Switzerland will trigger its Swiss VAT liability under the standard rules. Below the threshold (worldwide turnover) for compulsory liability a voluntary registration is possible.
Installation supplies
Below the threshold for compulsory VAT registration, foreign companies that supply goods, which are coming from abroad and are installed by them or for their account, to customers in Switzerland, will have to take specific compliance rules for VAT/customs treatment at the Swiss border into account.
Distribution
Commercial reasons may move a foreign company to register voluntary for Swiss VAT in order to be able to act as local distributor (or retailer) on the Swiss market. When registering, the foreign company should also apply for a so-called subordination license.
