Value added tax – no escape for foreign companies

Bern is to reduce what it heavily terms as “VAT-related competitive disadvantages suffered by domestic companies”. It claims that services bought from abroad are often wrongly procured without VAT and are thereby less expensive for the buyer than domestic services. The government has therefore decided that in future, foreign companies must give a Swiss VAT number when selling services in Switzerland. Foreign companies will have to clarify their VAT liability in Switzerland. If a company’s turnover is more than CHF 100,000 globally rather than just in Switzerland, it will be liable for Swiss VAT.
According to government estimates, the additional receipts will be worth at least CHF 10 million a year.