Switzerland is not a member of the European Union and therefore is not bound by EU VAT rules. However, Switzerland has its own value-added tax (VAT) system, which is based on the Swiss Federal Act on Value Added Tax (VAT Act) and is administered by the Federal Tax Administration (FTA).
Under Swiss VAT law, the concept of a fixed establishment exists and is similar to the concept in EU VAT law. A fixed establishment is a place of business where a taxable person carries out economic activities and has a sufficient degree of permanence and structure.
According to the Swiss VAT Act, a taxable person is required to register for VAT in Switzerland if they have a fixed establishment in Switzerland and their annual turnover exceeds CHF 100,000. If a taxable person has no fixed establishment in Switzerland but supplies goods or services in Switzerland, they may be required to register for VAT if they exceed the CHF 100,000 threshold.
It is important to note that the Swiss definition of a fixed establishment may differ from the definition used in other countries, and it is recommended to consult a tax professional for advice on specific situations.
1 The place of supply of a service is deemed, subject to paragraph 2, to be the place at which the recipient of the service has its registered office or a permanent establishment for which the service is provided, or in the absence of such a registered office or such a permanent establishment, its domicile or the place of his normal abode.
