VAT in Switzerland guide

VAT rates

The VAT rates are:

• Standard rate: 7.7%
• Reduced rate: 2.5%
• Special rate of 3.7% (for hotel accommodation)

Switzerland VAT for digital service providers

Since 2010, the place of supply for VAT purposes of electronic supplies to Swiss consumers is Switzerland.  This means foreign providers of such supplies may have to register for Swiss VAT, charge and pay local VAT.

This includes Liechtenstein, which is in a VAT union with Switzerland.

The current VAT registration threshold for non-resident service providers is CHF 100,000 per annum. There is a proposal to change this to include all worldwide income from electronic services

Late – registration penalties

Taxable persons should be registered with the federal tax administration in writing within 30 days after the commencement of their tax liability or 60 days for persons who become taxable solely because of the acquisition tax. A penalty may be levied for late VAT registration. In the case of tax evasion, fines of up to CHF800,000 may be charged. The amount of the fine varies depending on the circumstances.