Electronic Services via App Stores: Swiss VAT Duties for Non‑Resident Sellers

Foreign digital service providers must register for Swiss VAT if global sales exceed CHF 100,000, regardless of low Swiss sales. Platforms may not handle VAT for all markets. Providers should ensure contract terms clarify their VAT responsibilities to avoid compliance risks.

Foreign providers of digital services (e.g., apps, streaming, in-app services) often distribute via platforms like Apple's App Store or Google's Play Store. Many assume the platform handles all VAT obligations, leaving them with none to foreign tax authorities. This assumption does not always hold for Switzerland.

Swiss VAT on Electronic Services

Under Swiss VAT law, B2C electronic services are taxed at the customer's place of residence. Foreign providers supplying such services to Swiss private customers must register for Swiss VAT if their global annual sales exceed CHF 100,000. Registration can be required from the first Swiss sale if this worldwide threshold is already met. There is no separate Swiss sales threshold.

Platform Model: Who Is the Service Provider?

In many platform setups, the platform acts as the service provider to the end customer (with the actual provider supplying to the platform), and the platform handles VAT.

However, this does not apply automatically in all countries. Some platforms exclude certain markets—including Switzerland in some cases—from this arrangement. In those cases, the provider (not the platform) is treated as the service provider to the Swiss customer for VAT purposes.

Consequences

Providers may then face Swiss VAT registration and accounting obligations—even if Swiss sales are low—as long as their global sales exceed CHF 100,000.

Recommendation

Providers should not automatically rely on the platform handling VAT. The key is who contractually acts as the service provider to the end customer. Platforms often have special rules for Switzerland.

Carefully review (or have reviewed) the platform's contractual terms and conditions. If the services are attributed to the provider for tax purposes, Swiss VAT registration may be required to avoid compliance risks.