Changes for foreign companies in Swiss VAT law from 1 January 2018

As of 1 January 2018, the VAT regulations in the Switzerland essential for foreign entrepreneurs worsened. This is intended to reduce the competitive disadvantages for Swiss companies caused by VAT.

In advance, All clear for pure goods deliveries by foreign companies an Swiss companies Nothing changes, provided that the Foreign supplier Not also Importer appearance and takes over the import tax. From a VAT perspective, this is where the Delivery location Also further abroad. This leads to no relevant change. Anders however, on foreign companies, the deliveries with VAT place of supply Switzerland carry out. So far were these only from the Swiss Value Added Tax freed, when the taxable turnover in Switzerland and Liechtenstein together 100.000 CHF breached However, new from 1.1.2018 is that the global turnover for the Reason for VAT liability authoritative is. Performs a contractor with worldwide taxable supplies exceeding 100,000 CHigh frequency Deliveries with Delivery location Switzerland, the entrepreneur has in Switzerland to Register and To pay VAT.

One Reverse Charge Mechanism for (other) services, as is customary in the European Union, gives is not in Switzerland. Solutions of a foreign company to a Swiss company with Place of performance Switzerland subject to the so-called Withholding tax. With this Withholding tax Is it going Value Added Tax (VAT) liability similar to the reverse charge system to the service recipient, if the performing contractor neither in Switzerland resident still VAT registered and it is when the Beneficiary is a Swiss-based entrepreneur. Therefore, the foreign entrepreneur does not have to register in Switzerland in these cases. However, it should be noted that the Definition one Performance in Switzerland much narrower is considered to be in Austria. This is particularly true in the main and ancillary construction trades, where there are Differences from the Austrian definition. For example, counting pure labour performance (such as repairs, installations and cleaning of facilities) and the provision of an item for use not as supplies for the purposes of the Swiss Value Added Tax Act. Likewise for architectural services related to land in Switzerland and telecommunications and electronic services to non-business customers in existence Exceptions. Achieves a Foreign company in these cases with such "services" in Switzerland Less also 100.000 Swiss franc, but worldwide at least 100,000 Swiss franc Revenue, will it from 01/01/2018 firstly subject to VAT in Switzerland.

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