New VAT rules on the territory of Switzerland

VAT changes in Switzerland enter into force on 1 January 2018

From 1^st January 2018, the taxation rules for the services providers on the territory of Switzerland will change. For many Polish entrepreneurs, an obligation to register for VAT purposes on the territory of Switzerland will arise from the first transaction on the territory of Switzerland.

Partial amendment to the Swiss VAT Act will introduce significant changes for the majority of foreign companies, as its aim is to limit unfavorable VAT settlement rules for Swiss entrepreneurs in compare to the foreigners.

A new definition of the tax obligation on the territory of Switzerland

From 1st January 2018, the currently known CHF 100,000 limit will no longer apply to sales generated only in Switzerland, but it will cover all sales achieved by the company. Under the new regulation, the volume of worldwide turnover is binding for the arising of a tax obligations on the territory of Switzerland.

If the company will generate a sales level of over CHF 100,000 worldwide, it will be a subject to the Swiss VAT obligation starting from the first CHF generated on the territory of Switzerland.

New VAT rates

From 1st January 2018 new, lower VAT rates will enter into force in Switzerland. The basic rate will be reduced to 7,7% instead of current 8%. The special rate for accommodation services in the current amount of 3.8% will be reduced to 3.7%. Only the reduced VAT rate of 2.5% will remain at current 2.5% level.

How TAAC Solutions can support you?

If your services will result in a tax obligation in Switzerland, you must
in advance register as a VAT payer in Switzerland.

TAAC Solutions cooperates with Swiss consulting companies, which provide services of a VAT tax representative in Switzerland.

If you are interested in cooperation, please do not hesitate to contact us:

aleksandra.serafin@taacsolutions.pl