Understanding Tax Identification Numbers in Switzerland: TIN, UID and VAT ID

The Steueridentifikation (Steuer-ID), or Tax Identification Number (TIN), is a unique number assigned to natural persons residing in Switzerland for administrative and personal tax purposes. This unique 13-digit identifier remains unchanged throughout a person's lifetime and serves as the primary link between individuals and Swiss tax authorities.

What is the tax ID used for?

The primary purpose of the TIN is to uniquely identify individuals residing in Switzerland for tax reporting and various administrative processes related to pensions and social security. The TIN also helps facilitate smooth international automatic exchange of information (AEOI) and thus enhances global tax compliance.

Specifically, the TIN is used in the following contexts:

• Filing income tax returns with Swiss authorities
• Facilitating identification for tax audits and assessments
• Reporting income from employment or financial institutions
• Linking individuals to their contributions and benefits under old-age and survivors’ insurance schemes (AHV/IV/EO)
• Participating in international tax agreements, such as the Automatic Exchange of Information (AEOI), which allows Swiss authorities to share financial information with other countries to prevent tax evasion

How is the tax ID assigned and where can it be found?

In Switzerland, the personal tax ID corresponds to a person’s social insurance (AHV) number. This is assigned to natural persons shortly after their birth if they are born and live in Switzerland, and never changes from that day forward.

Foreign-born nationals who become tax residents of Switzerland receive their tax ID when they register with the Swiss tax authorities.

As the tax ID remains the same throughout a taxpayer’s life, and corresponds to their AHV number, it can easily be found in the following ways:

• From their employer if they are in a full-time employment relationship,
• Their health insurance card if they are insured in Switzerland,
• From the compensation fund.

How is the tax ID constructed?

The AHV number (or TIN) in Switzerland consists of 13 digits separated by three dots. It is structured as follows:

1. Digits 1 – 3: The first three digits represent the country code, which is “756” for Swiss AHV numbers.
2. Digits 4 – 12: The next nine digits are randomly generated, and therefore contain no personal information of the individual.
3. Digit 13: The final digit is a check digit calculated using the EAN-13 system. This is computed based on a specific mathematical formula that checks for data entry errors.

Here is an example of what the tax identification number looks like:

756.3210.9876.06

Companies in Switzerland need a VAT Number when their annual turnover exceeds CHF 100,000 or when they voluntarily register for VAT. The VAT Number is based on the company's Company Identification Number (UID) with the suffix "MWST" and is automatically assigned by the Federal Tax Administration upon registration. It is used to handle VAT obligations within Switzerland.

What is the VAT Number used for?

The VAT Number is particularly used to facilitate the processing and collection of VAT domestically by uniquely identifying companies registered for VAT. The VAT Number serves the following purposes:

• Assistance in collecting VAT on behalf of the Swiss authorities when selling goods or services.
• Reclaiming VAT on eligible business expenses.
• Facilitating accounting and reporting related to VAT.

For companies operating in Switzerland, the VAT Number is essential to ensure compliance with national tax laws.

When is the VAT Number assigned and how is it structured?

The VAT Number is automatically assigned to companies by the Federal Tax Administration (FTA) as soon as they register for VAT. In Switzerland, companies are generally required to register for VAT if their annual turnover exceeds CHF 100,000.

Important Notes:

• Exemptions: Certain activities may be exempt from VAT obligations.
• Foreign Companies: Companies based abroad that provide services in Switzerland must register for VAT under certain conditions, regardless of turnover.
• Voluntary Registration: Companies with lower turnover can voluntarily register for VAT.
• Registration timeline: The FTA usually processes VAT registrations within approximately 3–4 weeks. Foreign companies without a registered office in Switzerland must appoint a fiscal representative in Switzerland to handle all VAT correspondence and compliance matters.

How does the Swiss VAT Number differ from EU VAT Identification Numbers?

The Swiss VAT Number is only used to manage VAT obligations within Switzerland and is therefore not recognized within the EU for intra-community transactions. This means Swiss companies must obtain separate VAT identification numbers in EU countries where they conduct business.

In Switzerland, the Value Added Tax Number (VAT Number) is used to identify companies that provide services subject to VAT. This number is based on the Company Identification Number (UID) and is used to manage VAT obligations within Switzerland.

In the European Union, on the other hand, the VAT Identification Number is used to uniquely identify companies for intra-community transactions. However, the designation of this number varies from country to country:

• Germany: USt-IdNr. (Umsatzsteuer-Identifikationsnummer)
• Austria: UID-Nummer (Umsatzsteuer-Identifikationsnummer)
• Other EU Countries: Designations like VAT Number, VAT Identification Number, NIF (Número de Identificación Fiscal), etc.

Key Points:

• Validity and Recognition: The Swiss VAT Number is not recognized in the EU as a valid VAT Identification Number. Therefore, Swiss companies cannot use their VAT Number for intra-community supplies or services within the EU.
• Applying for an EU VAT Identification Number: Swiss companies conducting VAT-taxable business in the EU must register for VAT in the respective EU member state. They will receive a local VAT Identification Number of the respective country.
• Use of the Term "USt-ID" in Switzerland: Although the term "USt-ID" is specifically used in Germany, it is less common in Switzerland. In Switzerland, the official term is the Value Added Tax Number (VAT Number). However, due to close economic ties with Germany, the term "USt-ID" may be known in Switzerland, especially in cross-border trade.

Note for Swiss Companies:

If you, as a Swiss company, wish to conduct business within the EU, you may need to register for VAT in one or more EU countries and apply for a corresponding VAT Identification Number of the respective country. This allows you to comply with EU VAT regulations and entitles you, under certain conditions, to benefit from VAT exemption for intra-community supplies.