When Must a Foreign Company Register for VAT in Switzerland?

Several situations make Swiss VAT registration mandatory for a foreign company. The location of your registered office is of little importance; it is the nature of your operations that matters.

The Global Revenue Threshold of CHF 100,000

This is the most common scenario. The Federal Tax Administration (FTA) considers taxable turnover generated worldwide, not just in Switzerland. As soon as your company exceeds CHF 100,000 (approximately €103,000), it must register for VAT in Switzerland before, or at the latest during, it’s very first taxable transaction in the country.

The Storage of Goods on Swiss Territory

If you hold stock in Switzerland, registration is mandatory from the first euro of turnover. There is no threshold. Simply having goods in a Swiss warehouse, stock on consignment with a customer, or via a logistics platform requires you to obtain a CHE VAT number.

The Sale of Goods Under the Incoterm DDP (Delivered Duty Paid)

When you sell using the Incoterm DDP, you commit to delivering the goods to your Swiss customer, with customs clearance and import taxes paid. You therefore act as the official importer in Switzerland. This responsibility requires you to register for VAT.

Ticket Sales for Events in Switzerland

Services related to cultural, artistic; sporting, entertainment, or educational activities are taxable where they take place. If your company organizes a concert in Zurich, a seminar in Lausanne, or a sporting event in Basel, you must register for VAT in Switzerland to charge tax on tickets sold, regardless of where your company is based.

How to Obtain a Swiss VAT Number (CHE)

Registering for VAT in Switzerland has two major peculiarities often overlooked by companies accustomed to European systems. Ignoring them blocks the registration process.

The Obligation to Appoint a Tax Representative

Any foreign company without a registered office or permanent establishment in Switzerland must appoint a tax representative domiciled in Switzerland. This is a non-negotiable condition for the FTA.

This representative is your sole point of contact with the tax authorities. They share responsibility for your obligations, ensuring VAT returns are correctly submitted on time and tax is paid. Without a signed power of attorney, your registration application will be rejected.

Depositing a Tax Bond in Switzerland

The FTA requires a financial guarantee to protect against potential VAT default. This can be a deposit into a blocked bank account in the name of the administration or a bank guarantee issued by a Swiss institution.

The amount is generally 3% of your projected annual turnover in Switzerland, with a minimum of CHF 2,000 and a maximum of CHF 250,000. This sum is refunded when you deregister from VAT, provided all tax debts have been settled.

What Documents Are Required to Register for VAT in Switzerland?

Preparing your application in advance ensures quick registration. Gather the following documents.

The Company's Identification Documents

• Extract from the commercial register of your country (type Kbis), dated less than 3 months ago.
• Company statutes, up-to-date and signed.
• Certificate of VAT registration in your country of origin.
• Full contact details (address, telephone, email) of the company and its managers.

Documents Relating to Activity in Switzerland

• A detailed description of the operations you plan to carry out in Switzerland.
• Sales forecasts for the current year and the following year in Switzerland.
• If possible, copies of contracts, purchase orders or pro forma invoices with Swiss clients to justify your request.

Documents Related to the Swiss Tax Representative

The power of attorney form provided by your representative, duly signed by a legal representative of your company. This document authorizes them to act on your behalf with the FTA.

The Official FTA Forms

• Form No. 1: "Declaration of liability for VAT".
• Form No. 2: "Questionnaire for the registration of foreign companies".