Fiscal Representation and VAT Registration in Switzerland: 2023 updates
In this article Valcorp tax specialists in Switzerland will explain the requirements for VAT registration in Switzerland and in which cases a local fiscal representative must be appointed.
Fiscal representation, also known as “tax representation,” for non-resident entities in Switzerland involves individuals or entities holding a valid activity license issued by the Swiss tax authorities.
Non-resident businesses have the option to delegate their representation for fulfilling Swiss tax obligations to a fiscal representative, in accordance with Swiss legal requirements.
For non-EU businesses engaging in sales activities in Switzerland that result in VAT liabilities, it is likely necessary to appoint a local fiscal representative to ensure complete adherence to Swiss tax regulations.
You are required to register for VAT in Switzerland:
- dealing with the import of goods and products into Switzerland;
- buying and selling goods on the Swiss territory;
- sell goods to Swiss consumers on the internet;
- storing goods and products in Swiss warehouses;
- organising events and shows at which the customers pay for an entry ticket.
How to register for Swiss VAT?
If you want to issue invoices for Swiss VAT, you must first register for VAT, which your Swiss tax representative can help you with. Once you have successfully registered, the tax authorities will issue you with your VAT number in writing.
The tax authorities will then notify the Federal Statistical Office of the registration of your company. Your company will then be registered in the IDE register, the central database for identifying companies.
The time frame for registration approximately 4 weeks.
Documents for VAT registration in Switzerland:
- Application form
- Company details (name, legal address)
- Proof of meeting the VAT registration threshold (if applicable)
- Company’s financial data
Please note that registering your company with the tax authorities requires the deposit of a financial security in the form of cash or a bond. The amount of the financial guarantee is equal to 3% of your annual taxable turnover in Switzerland, with a minimum of 2,000 francs (approx. €2,073) and a maximum of 250,000 francs (approx. €259,113).
What are the Swiss VAT rates?
Most services in Switzerland are subject to the standard VAT rate. However, some services related to basic human needs are subject to reduced VAT rates.
- The standard VAT rate: 7.7%
- Intermediate rate: 3.7%
- The reduced VAT rate: 2.5%.
- From January 1st 2024, the Swiss VAT rates will be as follows:
- The standard VAT rate will increase from 7.7% (2023) to 8.1% (2024)
- The reduced rate will increase from 2.5% (2023) to 2.6% (2024)
- The intermediate rate will increase from 3.7% (2023) to 3.8% (2024)
Requirements to appoint a fiscal representative/tax representative in Switzerland
Fiscal representation, also known as “tax representation,” for non-resident entities in Switzerland involves individuals or entities holding a valid activity license issued by the Swiss tax authorities.
Non-resident businesses have the option to delegate their representation for fulfilling Swiss tax obligations to a fiscal representative, in accordance with Swiss legal requirements.
For non-EU businesses engaging in sales activities in Switzerland that result in VAT liabilities, it is likely necessary to appoint a local fiscal representative to ensure complete adherence to Swiss tax regulations.
To accurately assess whether your business needs to designate a tax representative in Switzerland, we encourage you to get in touch with us.
Is It Necessary to Appoint a Fiscal Representative in Switzerland?
If your company, which is a non-EU resident entity, conducts sales in Switzerland that lead to the generation of VAT, the likelihood is high that appointing a fiscal representative will be necessary.
Nevertheless, a comprehensive determination of your obligation to designate a fiscal representative would depend on the following considerations:
- Is your company established as a non-EU resident entity?
- Does your company engage in sales activities within Switzerland that trigger VAT liabilities?
- Does your company have a permanent establishment in Switzerland?
How can VALCORP help?
Choose Valcorp as your fiscal representative in Switzerland and experience a seamless process.
We provide full spectrum of fiscal representative services:
- Licensed fiscal representatives
- Tax & Accounting services
- Ensuring legal compliance
Valcorp is trusted by the largest companies in the world to be their tax representatives in Switzerland. We have proven record of excellence.
We have assisted hundreds of companies with Fiscal Representation and VAT Registration in Switzerland.
Valcorp is based in Nations Business Center, Geneva, Switzerland, contact is via email: info@valcorp.eu or via telephone +37255658650 and one of our Swiss tax consultants will be in touch with you.
To find out more details about fiscal representation and VAT registration in Switzerland, you are welcome to read our article on VAT registration in Switzerland VAT Registration in Switzerland – Valcorp Business Solutions as well as on fiscal representation in Switzerland Fiscal Representation in Switzerland – Valcorp Business Solutions.
Contact us also using the below contact form.