Today I still have a permit B and after some advice offered here in another thread I have made a request at my local commune it looks like it will be changed to a permit C in the new year. Step one was relatively simple even if not completed yet....

Here's where it gets a little more complex ! I have been offered a great opportunity with a company based outside of Switzerland, in fact it's a start up company that only has a few employees. They have offered me a contract that would effectively mean that I'd be a contractor with a 100% contract. This to me would mean that I'd be self employed and this is the part tht I'm not sure about. I've thought about several scenarios,

1: Self employed as above
2: Employee of said company but I pay all the taxes and insurances locally
3: Set up a company that I own but this looks complex and expensive

I've discussed with my Fiduciare today and things are still not clear for me and I'd appreciate any advice that could be offered

Thanks

Same thing here.
Just need to write in your Rechnung to the Germans that according to Paragraph 13b of the MwSt. Gesetz (German VAT Law) they must pay the 19% tax.
Nach Paragraf 13b des MwSt Gesetzes müss die MwSt. abgeführt werden.
In effect it means that they pay the tax to the taxman and get it in a roundabout way straight back.
Your bills quote the Netto amount sans MwSt. Then is up to the CHian taxman to send you a bill, this will come after one year so make sure that you have the dosh ready.

Ok thanks, what advice would you offer ?

Go to a close to the border German Steuerberater.

Not at all sure this is correct. As CH is not in the EU, there should be no VAT applicable for invoices to a client outside the country.

To the OP, the other option you've not considered is for your client to set up a branch office in CH of which you then become an employee. Nothing's going to happen this side of the new year anyway, so you'll be on a C permit (esp if you are an EU citizen) so employment/self-employment is a non-issue from a permit POV

If you choose the self-employed route, you will want to register an Einzelfirma with the Handelsregisteramt otherwise you are likely to be deemed an employee regardless

This is what I am saying, however the OP must refer to paragraph 13b in his bills.

Hi

Option 2: If you become employee by the company abroad and you move abroad and become tax resident abroad, you will lose your C-permit after 6 month. However, if you keep your tax residency here in Switzerland and travel to your work premises then you may stay here and pay your taxes here. In some cases it is possible as you are regarded as "Grenzgänger" frontier worker. It depends on the distance from the border.

Option 1: There is not a problem at all to stay self-employed and to invoice them (without VAT of the foreign country). My company employs few self-employed free lancers from outside Switzerland there is no problem. The VAT is only subject to your income here in country and only if you are liable to VAT (i.e. if your income is higher than a certain amount, in some cantons it is CHF 130 grand p.a.)

Option 3: setting up a company is not necessarily expensive, it will only become complicated and expensive if you set up a GmbH or a AG, which means that you need initiation costs for the incorporation as well as maintenance cost per year (between 3 and 7 thousand p.a.), e.g. for professional audition. However, you may set up a sole proprietorship company and it costs you nothing (or almost nothing), just a request letter to the local AHV authority and or trade register registration (optional). BTW when setting up a GmbH and or AG you may chose to buy an existing one that is inactive. It is sometimes easier and less expensive.

All the best

Great Info and very much appreciated. I'm slowly gaining more knowledge after these posts, calls to the AVS and the Fiduciare.....

I have the form from the AVS to request to act as an independent and also I like the idea of setting up a sole proprietorship, I will learn more about this on Friday.

OK after some research it seems that you cannot become fully self employed if you have only one customer, you need a minimum of 3 ! There is an alternative where I could just pay my AVS contributions directly as an individual but it seems higher risk from what I can see.

In the end I have decided to set up an Sarl (LTD) business based here in Vaud. There are costs in doing so but it looks the better option for me right now.

Thanks

Why? What does it have to do with a Swiss supplier what VAT laws exist in his customer's country.

Is a Swiss supplier supposed to be conversant with the VAT laws in each of the EU countries? Does not make sense.

About "Then is up to the CHian taxman to send you a bill, this will come after one year so make sure that you have the dosh ready. "
Are you talking about the Swiss VAT tax man? There would be no VAT paid in Switzerland on bills sent to EU customers; in fact, the supplier should be claiming a refund from the CHian taxman on VAT in business related purchases supplied in Switzerland by Swiss VAT registered companies.

When setting up the Sarl company, do not forget to submit the form called waiver of audit, this will save you some money. I would also recommend to look at different offers for setting up a company - the prices vary considerably. You are free to choose your notary - even from a different canton (this could also save you some money). I would go directly to a public notary rather than to a fiduciary / Treuhänder (most of the times, they just act as "middleman").

You want to make friends with www.gruenden.ch and if you're careful, with the help of the notary, you should be able to do the set up yourself if you have the language skills. You can find templates for all the docs you need e.g. articles of association

Since you showed your work, I really wish I knew enough on this topic to help you! Kudos however on using Y!A correctly. I do wish to caution you though, Penn Foster does monitor this site! I think you'd be all right since you aren't asking us to do the work.
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