How to handle Swiss VAT properly
Many companies are currently expanding their business activities into the international market, where VAT is becoming increasingly important. They have to consider representation for VAT purposes – known also as tax delegation, tax representation or fiscal representation.
For foreign companies seeking to do business in Switzerland, this is how it works:
Companies registered abroad but providing services in Switzerland may be liable for VAT. If a company is liable for VAT, it has to be entered in the Swiss VAT register. The VAT legislation states that it is essential to appoint a representative in Switzerland.
The challenges you face
- You want to extend your business activities into Switzerland and would like to be able to estimate your potential VAT risks.
- You trade internationally and find yourself facing problems with VAT and with Customs.
- You would like to make sure that you are complying with all legislation applicable in Switzerland and that your customers do not have any problems with input tax deduction.
How PwC can support you
We give foreign companies doing business in Switzerland reliable and competent support in VAT matters. Our advisory services cover every aspect of settlement and representation for Swiss VAT:
- Clarification of VAT liability
- Help with registration
- Support with quarterly VAT returns
- Checking the annual turnover reconciliation and input tax reconciliation
- VAT optimisation
- Instructing forwarding agents and customs agents on the correct handling of imports and exports
- Help with VAT audits by the FTA
- VAT assessment of new transactions
Contacts
Of further interest
- GlobalVATOnline
- QuoVATis
- Publication: Die Schweizer Mehrwertsteuer
- Publication: VAT Consulting
- Newsletters: TAXeNEWS & breakingTAXnews
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