VAT was introduced in Switzerland January 1st, 1995. This is a general tax on consumption of goods and services. This tax is levied at all stages of production and distribution, as well as on the importation of goods. It is also levied on indigenous providers of services and on the acquisition of services of companies headquartered abroad.
Anyone providing revenue-producing commercial or professional services is subject to VAT if deliveries, services and administration in Swiss territory exceeds 100,000 Swiss francs per year.
Anyone acquiring taxable services totaling more than 10,000 Swiss francs per year from companies based abroad is also subject to the tax. VAT is also payable by any person liable to pay customs duties.
- 8% : standard rate
- 2.5% : food and drink, medicines, newspapers
- 3.8% : supply of hotel accommodation (including breakfast)
VAT for headquartered companies
With regard to value added tax (VAT), companies headquartered abroad must check if they are subject to VAT. If a company provides services in Switzerland, it must pay Swiss VAT. Only companies with a total annual taxable turnover of less than CHF 100,000 in Switzerland are exempt from paying VAT.