News Value Added Tax

Swiss companies - obligation to register even if 100% of the services are provided abroad

Since January 1st 2018, Swiss companies (from a taxable turnover of CHF 100,000) must also register for VAT, even if they provide 100% of their services abroad. 


Until now, only the "services in Switzerland" had to be considered when assessing the relevant sales threshold. Now, the "worldwide turnover" is relevant for Swiss companies too. This extension of the obligation to register was introduced as part of the partial revision of the Swiss VAT law.


If the criterion of worldwide turnover with taxable services of over CHF 100,000 is met, there is a mandatory obligation to register with the Federal Tax Authority (FTA) and the periodic declaration of VAT. This is required even if finally no Swiss VAT is due on the services provided abroad.


If your company meets the relevant sales threshold when considering the worldwide turnover, we recommend that you review the impact of the new VAT rules as soon as possible.


We will gladly assist you with these considerations as well as with any necessary registration. Do not hesitate to contact us if you have any questions.


Patrick Lindegger 4 April 2018