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Old 14.12.2017, 10:32
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Necessary for VAT registration or not?

Hello all,

I am a consultant and started my own company in October 2016. It has been recognised as an "independent company" in Switzerland so it is not LLC or anything since I am a sole trader, so to speak.

Most of my income comes from foreign-based companies (usually in Europe), but I do get a little work from Swiss companies as well. I know that the threshold to be required to register for a VAT number is CHF 100,000. However, 3 or 4 people have told me that it is only needed if I earn CHF 100,000 or more from Swiss companies, not the foreign ones.

So for example, I technically could make CHF 120,000 from companies based outside of Switzerland and CHF 10,000 from companies based in Switzerland, and I still would NOT need to register.

However, I was just speaking to my accountant yesterday, and she said that all of them are wrong. That with ANY income which exceeds CHF 100,000 in a year, even if it all comes from foreign sources, I would still need to register for a Swiss VAT number. I would then only be required to charge VAT to Swiss companies, but not the ones abroad. BUT, I would still be required to register.

I see her point, but I find it odd that the 3 or 4 people I spoke with said something different. They are either independent company owners themselves or help people launch start-ups.

So, who is right? My accountant or the others? It is possible that my accountant has limited experience with people who get most of their income from abroad. But maybe she is right instead?

I have tried to find a definitive answer online but have struggled. Any insight would be highly appreciated.

Thanks!

Last edited by Konuku; 14.12.2017 at 11:46.
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Old 14.12.2017, 10:39
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Re: Necessary for VAT registration or not?

Law changes on 1st January 2018 that VAT threshold will be calculated on Global turnover.

This was intended to primarily effect companies selling into Switzerland as they will have to register for and charge Swiss VAT on exports to Switzerland!
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Old 14.12.2017, 11:45
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Re: Necessary for VAT registration or not?

Thanks!
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