If you sell products to customers in Switzerland, you may be required to charge and remit Swiss VAT. This article gives you an overview.
When do I need to charge Swiss VAT?
You are required to register for VAT in Switzerland as soon as:
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your total annual revenue worldwide exceeds CHF 100,000 (including outside Switzerland), and
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you sell digital products to private customers in Switzerland (B2C).
Note: This applies regardless of whether your business is based in Germany, the EU, or elsewhere.
What does this mean in practice?
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You must register with the Swiss Federal Tax Administration.
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For B2C customers in Switzerland, you must apply the current Swiss VAT rate (currently 8.1%, or 2.6% for eBooks) on your invoices and regularly remit it to the Swiss Federal Tax Administration.
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For B2B customers in Switzerland, the reverse charge mechanism typically applies, as long as the buyer’s business status is documented.
If you sell exclusively to businesses, you don’t need to show Swiss VAT, but you may still need to register if your total global revenue exceeds the CHF 100,000 threshold.
What happens if I don’t register?
The Swiss tax authorities may demand back payments of VAT and interest, and in more serious cases, may also impose fines.
We recommend monitoring your revenue and registering early if required.
Disclaimer: We do not provide tax advice. Please consult your tax advisor for case-specific guidance.
How do I activate Swiss VAT in my account?
If the conditions above apply to you, and you are required to charge Swiss VAT on your invoices, you must enable Swiss VAT in your invoice settings. Once activated, the appropriate rate will automatically be applied to future invoices.
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EU-based sellers
You’ll find the option Display Swiss VAT on invoices underneath the OSS setting if the OSS procedure is enabled.
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Sellers outside the EU
You can set a custom tax rate for Switzerland using the usual tax settings in your account. Activate the option Calculate taxes for sales and add the Swiss rate manually.
