The electronic invoice (“e-invoice”) goes back to the EU Commission’s “VAT in the Digital Age (VIDA)” initiative of December 8, 2022. The digitization of the VAT system in the EU is intended to adapt the framework conditions to the digital reality. Above all, it is about reducing the vulnerability to tax fraud in cross-border trade within the EU.
What consequences does e-invoicing have for Swiss companies?
At first glance, the current developments in e-invoicing, especially in Switzerland’s neighboring countries, do not appear to affect Swiss companies. Even in Germany, where e-invoicing will be introduced on January 1, 2025, the regulations only apply to sales from taxable services between resident companies. However, not only companies with a place of business in Germany are considered resident. The mere existence of a permanent establishment for VAT purposes is sufficient for residency. A German VAT registration alone, on the other hand, does not lead to an obligation for Swiss companies to participate in e-invoicing.
For Swiss companies with a permanent establishment for VAT purposes in Germany, however, this does not mean that it must be possible to generate e-invoices as of January 1, 2025. A comprehensive obligation to issue e-invoices is only planned from January 1, 2028. Until then, invoices may continue to be issued in paper form or in other electronic formats, subject to certain restrictions.
Source: taxpartner.ch
