Switzerland imposed Value Added Tax on digital or electronic services in 2010. There is a global income VAT registration threshold of CHF100,000. At VAT Calc, we track global VAT and GST on digital servicesto follow which countries are implementing their VAT or GST on non-resident providers of digital services.
What e-services are subject to Swiss VAT?
The following services are liable to Swiss VAT:
- Broadcast television or radio
- Mobile phone, texting and data services
- Downloads or streaming music, film and games
- Online gambling and games of chance
- Software as a Service (SaaS) or downloadable software
- Web hosting
- Data, including images
VAT registration and compliance for digital services
There is a global invoice VAT registration threshold for Switzerland of CHF100,000. This means total income is considered when evaluating if a digital services provider should VAT register. There is no simplified VAT registration process for non-residents. And they must appoint a Fiscal Representative.
The compliance falls to non-resident facilitating marketplace in the case they arrange, introduce the transactions and control terms and conditions. They are subject to the same CHF 100,000 registration threshold.
B2B digital services reverse charge
B2B transactions should be zero-rated by a non-resident. And the business customer may report the transaction as reverse charge in their own return. Once VAT registered, foreign businesses have to declare all default services ren- dered to a recipient in the Swiss Customs Territory regardless whether the recipient is registered for VAT or not.
Europe VAT on digital services
|Country (click for details)||Rate||Date||Threshold||Comments|
|EU 27 member states||17% to 27%||Jan 2015||€10k EU residents; Nil for non-EU|
|Iceland||24%||Nov 2011||ISK 2 million|
|Norway||25%||Jul 2011||NOK 50,000|
|Russia||16.67%||Jan 2017||Nil||B2C & B2B|
|Switzerland||7.7%||Jan 2010||CHF 100,000 on global income|
|Ukraine||20%||Jan 2022||UAH 1m|