Foreign companies with annual revenue of over CHF 100,000 will have to pay VAT in Switzerland


As of 1st January 2018, legislative VAT framework conditions in Switzerland will change for foreign companies. 

This means that a foreign company with annual revenue of at least CHF 100,000 worldwide will have to pay VAT for all revenue earned in Switzerland and Liechtenstein. This applies in particular to areas related to the real estate and construction market.

As long as a foreign company is active in Switzerland, it will have to pay VAT. A foreign company must be represented by a local representative in Switzerland for whom a tax domicile is guaranteed for all affairs relating to VAT. A representative is a physical person or legal entity domiciled in Switzerland.

The chambers of commerce in Switzerland support foreign firms that are interested and take care of VAT registration and all related administrative activity.