Foreign businesses offering digital services to Swiss customers might have Swiss VAT obligations based on service type, supply location, and registration criteria. Telecommunications and electronic services face special rules, with a CHF 100,000 turnover threshold necessitating registration for B2C providers. Electronic services cover cloud/SaaS, downloads, apps, and AI. The place of supply for B2C is the recipient’s Swiss residence, while B2B follows reverse charge rules. Non-compliance risks retrospective assessments and penalties. Proper documentation can mitigate exposure in B2B transactions.
VAT Requirements for Foreign Digital Service Providers in Switzerland
Public
Other countries
Author: Ema Stamenković
Category:
General information
Views:
94
Content accuracy validation date:
10.11.2025
Content accuracy validation time:
08:12h
Foreign businesses supplying digital services to Swiss-established customers may face Swiss VAT obligations, depending on service qualification, place of supply, and registration requirements.
Special rules apply to telecommunications and electronic services; the CHF 100,000 worldwide turnover threshold triggers registration if derived from services taxable in Switzerland under Swiss law. For B2C supplies exceeding the threshold, providers must register, charge, and remit Swiss VAT.
Delimitation of Services
Electronic services include cloud/SaaS, downloads/streaming, apps (including video games), and AI-based services. These differ from goods supplies and advisory activities, impacting place of supply and VAT treatment.
Place of Supply and Liability of Foreign Providers
- B2C: Place of supply is the recipient’s Swiss residence.
- B2B: Swiss recipient accounts for VAT via reverse charge (acquisition tax); foreign provider registration is usually unnecessary unless B2C or other domestic taxable activities occur. Once registered, providers must charge Swiss VAT, file returns, and comply formally, regardless of service origin, if taxable in Switzerland.
Platform and Marketplace Scenarios
- Apple App Store: Apple acts as merchant of record on the Swiss store, invoices VAT to customers; foreign developers need not register for these transactions (absent other Swiss taxable activities).
- Google Play Store: Providers retain Swiss VAT obligations for app/in-app sales; platform fees are assessed separately. Contractual and operational roles must be clearly documented and consistently reflected in invoicing and systems.
Consequences of Non-Compliance
Non-registration or incorrect reporting may trigger retroactive assessments for up to five periods, plus interest and penalties—especially significant in widespread B2C sales.
Mitigating Exposure in B2B Settings
Where Swiss recipients correctly self-assess acquisition tax, the FTA often waives duplicative charges on foreign providers upon review of evidence. Robust transaction and declaration documentation is essential.
Other news from Other countries
Important Changes to UAE VAT Registration and Deregistration
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Cabinet Decision No. 100 of 2024 updates VAT registration and deregistration processes in the UAE. Key changes include updated thresholds for mandatory and voluntary registration, streamlined deregistration procedures, revised tax group rules, and new exemption conditions. Businesses must reassess their compliance to avoid penalties and ensure efficient VAT management ahead of 2025. The processes... Read more
Brazil Postpones NFC-e (B2B) Ban to January 5, 2026
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Brazil has postponed the ban on issuing NFC-e (model 65) for transactions with legal entities (CNPJ) to January 5, 2026, giving businesses two extra months to transition to NF-e (model 55) for all B2B sales. The change reinforces the distinction between retail consumer invoices and corporate transactions, supporting national tax standardization under SPED. Companies must update systems, ensure cor... Read more
How Tourists Can Claim a VAT Refund in Thailand
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Tourists in Thailand can get a VAT refund on goods taken out of the country within 60 days. You must shop at approved stores, spend at least 2,000 THB (52.64 Euros) per store per day, keep receipts, and get a P.P.10 form. At the airport, have customs inspect your items and then claim your refund after immigration. Refund amounts depend on how much you spend, and luxury items require extra checks.... Read more
Introduction to New Zealand’s New e-Invoicing Requirement for Large Suppliers
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
New Zealand's Government Procurement Rules will require large suppliers to issue e-invoices for domestic transactions from 1 January 2027. This is aimed at promoting efficiency and transparency, and may exclude international suppliers and foreign currency transactions. The rule applies to domestic transactions in New Zealand dollars, excluding international suppliers and cross-border transactions.... Read more
Colombia Outlines New Tax Policy for Electronic Transactions
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Colombia's tax agency proposed a 1.5% withholding tax on electronic payments, exempting credit/debit transactions and certain natural persons. Decree 1,066 enables information sharing for determining tax obligations. A statement outlining plans to implement a new withholding tax on specific electronic payments was released by Colombia's tax agency. Recently, a draft regulation was made available... Read more
Vietnam’s Guidelines for Dispute Resolution in E-Commerce (Expected)
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Article 52 mandates e-commerce platforms establish accessible complaint systems for users, ensuring timely, fair processing based on evidence. Owners must inform complainants of decisions and resolution options. Disputes must follow published contract terms and relevant laws, utilizing negotiation or mediation methods. The Law on E-Commerce (the "Draft Law"), which is anticipated to be presented t... Read more