The revisions aim to allow Swiss companies similar competitive conditions to foreign companies by subjecting more to Swiss VAT.
Foreign companies active in Switzerland, with a worldwide turnover of more than CHF100,000 will be subject to Swiss VAT if they are involved in the following:
- Provision of electronic services to private individuals in Switzerland
- Services under a contract for work and services in Switzerland
- Work on items in Switzerland (e.g. repairs or assembly/fitting work)
- Goods dispatch from Switzerland
- Inventory management in Switzerland
- Physical software implementation in Switzerland
- Other physical work in Switzerland
This means almost all foreign businesses active in Switzerland will be subject to Swiss VAT from 1st January 2018 and they will need a Swiss Tax representative.
Please visit INPACT member, Caminada’s website, for more information on the Swiss VAT changes.