- Foreign companies operating in Switzerland should be aware of potential VAT pitfalls.
- Supply of goods with installation in Switzerland can lead to VAT registration obligations.
- Mismanaging importation can result in irrecoverable import VAT.
- B2C e-services provided to Swiss customers, including the sale of e-books, require VAT registration with the first sale to a Swiss non-VAT-registered customer.
- Once a foreign supplier is registered for Swiss VAT due to B2C sales, both B2C and B2B sales are subject to VAT.
- Supplies with installation are always considered supplies of goods in Switzerland.
- Assembly and installation are considered ancillary to the transport in certain cases, such as the sale of equipment that the seller must assemble and install at the purchaser’s premises without any adaptation to the layout of the space.
- Assembly and installation are not considered ancillary to the transport in other cases, such as the rental of an exhibition stand, including assembly, or the sale of a machine made operational and adapted to the particulars of the recipient’s premises.
- In cases of customized adaptation and installation of equipment at the customer’s premises, the foreign supplier is basically obliged to register for Swiss VAT.
- The distinction between a simple installation not leading to VAT registration and a customized or complex installation leading to mandatory VAT registration of the supplier is not straightforward.
- To avoid potential issues, the taxpayer can voluntarily register by means of a subordination license or request a binding opinion from the tax administration on its VAT registration obligations.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
