As from 1 August 2017, the guarantee for VAT for taxable persons not established in Switzerland will be recalculated.
As of 1 January 2015, companies domiciled abroad are in principle subject to VAT in Switzerland if they generate at least CHF 100,000 in turnover per year in Switzerland and the Principality of Liechtenstein.
If a company fulfils the conditions for VAT liability, it must register independently with the Federal Tax Administration (FTA). In addition, the person/company concerned must appoint a tax representative resident or domiciled in Switzerland and an unlimited joint and several guarantee by a bank domiciled in Switzerland or a cash deposit must be provided for the legally entitled monetary claims (see the FTA's Special Information on the Tax Liability of Foreign Companies).
According to a press release issued by the FTA on 31 July 2017, the security deposit for taxable persons not resident or domiciled in Switzerland will be recalculated from 1 August 2017.
According to the technical information of the FTA, this guarantee has so far basically corresponded to the amount of the expected annual tax due and amounted to at least CHF 5,000 and at most CHF 250,000.
From 1 August 2017, the security shall be calculated as follows:
- 3% of expected taxable domestic turnover (excluding exports)
- Minimum amount: CHF 2'000
- Maximum amount: CHF 250,000
The FTA reserves the right to use other calculation methods in special cases and states that the new calculation method cannot be applied retroactively.
The FTA also states that with the revised VAT Act (which comes into force on 1 January 2018), foreign companies are no longer taxable only from a domestic turnover of CHF 100,000, but from a worldwide turnover of CHF 100,000, provided that they generate part of this turnover in Switzerland. From 1 January 2019, anyone who sends small consignments from abroad to Switzerland from abroad that are exempt from import tax in the amount of at least CHF 100,000 per year will also be liable to tax in Switzerland.
The information letter of the FTA is available in both German and English:
All documents and further information are available here.
