VAT obligation and fiscal representation for foreign companies in Switzerland

Foreign companies must register for Swiss VAT once they provide taxable supplies in Switzerland and their worldwide annual turnover exceeds CHF 100,000. VAT registration is required regardless of whether the company has a physical presence in Switzerland; only the nature of the business activities matters.

Prior to 2018, foreign companies with a turnover of less than CHF 100,000 in Switzerland were not required to register for Swiss VAT themselves and could therefore conduct their business without a fiscal representative in Switzerland or a Swiss VAT number.

However, since the reform of Swiss VAT law, all foreign companies that provide taxable services in Switzerland and have a worldwide turnover of more than CHF 100,000 per year are subject to VAT in Switzerland. Only foreign companies whose worldwide annual turnover is less than CHF 100,000 are exempt from VAT.

Taxable supplies include, but are not limited to, the following activities:

• Operating a warehouse in Switzerland
• Provision of services under a contract for work and services
• Carrying out work on objects such as assembly, installation or maintenance of objects
• Digital services, e.g. electronic provision of software or music
• Other physical activities in Switzerland
• Eligible mail-order sales in Switzerland

Among others, companies domiciled abroad that provide services in Switzerland that are exclusively subject to purchase tax, such as consultancy services or services in the field of advertising, are exempt from taxation. Also exempt from tax are foreign companies that exclusively supply electricity and natural gas in pipelines to taxable persons in Switzerland. Such electricity and gas suppliers do not have to register as taxable persons in Switzerland.

Switzerland does not allow non-resident companies to directly register for VAT. Therefore, foreign businesses who have neither a place of residence nor a place of business in Switzerland need to appoint a fiscal representative to fulfil their Swiss VAT obligations.

The cost of fiscal representation in Switzerland can vary depending on various factors, including the complexity of the company's operations, the volume of transactions, and the services provided by the chosen representative.

At Nexova AG, we charge a competitive rate for our fiscal representation services; which includes a one-time registration fee of CHF 500 and an annual fee of CHF 1500. Foreign companies looking for fiscal representation in Switzerland need to consider the costs involved, and at the same time ensure that they choose a reputable fiscal representative with a proven track record.

With Nexova, you get a dedicated Swiss-based team that handles everything from initial registration to ongoing compliance at a transparent, fixed rate.

As mentioned, foreign companies who are liable for VAT in Switzerland must register through their appointed fiscal representative. The representative will handle the registration process, ensuring that all required information is submitted accurately and on time.

During the VAT registration process, the fiscal representative provides the necessary details about the foreign company, such as its legal form, business activities, turnover, and contact information. This information is mandatory for the Swiss tax authorities to assess the company's VAT liability and monitor compliance.

As of 2025, all VAT registrations must be completed electronically through the FTA's ePortal. Paper-based registration is no longer accepted. The registration process takes approximately four weeks from submission of a complete application.

The 2025 partial revision of the Swiss VAT Act introduced the possibility for certain foreign businesses to register for VAT without appointing a fiscal representative. However, this exemption is primarily available to online platform operators that can demonstrate compliance with FTA conditions. Most foreign businesses still require a Swiss-domiciled fiscal representative.

Key 2025 changes affecting foreign companies include:

• Platform taxation (deemed supplier model): Online marketplaces selling goods to Swiss customers now bear VAT collection responsibility, shifting the obligation from individual sellers to the platform. This means that even if you as an individual seller are below the CHF 100,000 threshold for small consignments, VAT will still be collected on your sales if they are made through a qualifying platform.
• Annual filing option: Eligible SMEs can now file VAT returns annually instead of quarterly.
• Electronic portal requirement: All VAT registrations and filings must be completed through the FTA's ePortal.
• New VAT exemptions: Travel agency services, care coordination, and certain healthcare services are newly exempt from Swiss VAT.

According to PWC Switzerland, the FTA may waive the fiscal representative requirement if procedural compliance is ensured through other means, though this option is currently limited primarily to qualifying online platforms.