Need a Swiss VAT representative?
Your business is expanding into Switzerland. When Swiss VAT registration becomes mandatory, Madronio gives you the local representation you need — and coordinates the specialist support around it.
Good news: your business is expanding into Switzerland.
The VAT requirement is one part of that growth. We give you the Swiss representation you need and coordinate the specialist support around it, while your company remains responsible for its own records, information and tax obligations.
The CHF 100,000 test looks at your worldwide turnover — not only your Swiss sales.
If you are already above the threshold and start a Swiss activity that is subject to Swiss VAT, registration can be required from that first Swiss activity. If you are still below the threshold but it is foreseeable that you will reach CHF 100,000 within the next 12 months, the same rule can apply.
As a general rule, if your company has no domicile, registered office or permanent establishment in Switzerland, it must appoint a Swiss VAT representative when Swiss VAT registration is required.
From first enquiry to active representation.
We understand the Swiss activity
Company, country, business activity, Swiss supplies, timing and worldwide turnover. If the VAT position is technically unclear, we coordinate a qualified tax adviser before registration.
Mandate and representation declaration
Once accepted, the foreign business appoints the Swiss representative and the representative accepts the mandate. The signed Swiss Federal Tax Administration (FTA) representation declaration is used to complete the VAT registration.
Registration and ongoing contact
We coordinate the online registration, retain the representation file, receive relevant Swiss Federal Tax Administration (FTA) correspondence and forward it promptly. VAT returns can be arranged separately through a fiduciary or tax adviser partner.
What Madronio does.
- Acts as your Swiss VAT representative and local point of contact.
- Receives relevant correspondence from the Swiss Federal Tax Administration (FTA) on your behalf and forwards it promptly to you.
- Maintains the representation file and tracks actions relating to the mandate.
- Coordinates the appropriate VAT specialist when filings, accounting or technical advice are needed.
What remains with your company.
- Provide complete and accurate information and documents.
- Maintain the underlying accounting records and supporting documentation.
- Approve or provide the figures needed for VAT returns.
- Pay Swiss VAT liabilities on time.
Madronio is the representative and coordinator, not a substitute for the client’s accounting function or specialist tax adviser.
The questions that matter.
When is a Swiss VAT representative generally required? (all cases except e-commerce — see below)
1. Your worldwide turnover is CHF 100,000 or more
If your annual WORLDWIDE turnover is CHF 100,000 or more and you start doing business in Switzerland that is subject to Swiss VAT, you must register for Swiss VAT. This can include, for example, installing machinery, carrying out work in Switzerland, catering at an event or providing certain services connected with Swiss property.
As a general rule, if your company has no domicile, registered office or permanent establishment in Switzerland, you must appoint a Swiss VAT representative.
You must submit the VAT registration within 30 days from the start of your Swiss VAT liability. As a general rule, a Swiss VAT representative must already be appointed for the registration. The Swiss Federal Tax Administration (FTA) may issue the Swiss VAT number afterwards.
In many cases, VAT liability starts with your first Swiss sale or the start of the Swiss service. It can start earlier if, for example, you issue an advance-payment invoice before the work begins.
2. Your worldwide turnover is still below CHF 100,000 — but is foreseen to reach it within the next 12 months
You do not need to wait until your turnover actually reaches CHF 100,000. If you start doing business in Switzerland and it can already be foreseen that your worldwide turnover will reach CHF 100,000 within the following 12 months, the same rules apply from your first Swiss business activity: VAT registration and, as a general rule, if you have no domicile, registered office or permanent establishment in Switzerland, a Swiss VAT representative.
3. Your worldwide turnover is below CHF 100,000 and is not expected to reach it
No mandatory Swiss VAT registration or Swiss VAT representative is required under this turnover rule. Special rules can still apply to certain activities, such as mail-order or platform sales.
Planning to start business in Switzerland? It is better to prepare before the 30-day clock starts. Madronio can prepare the representation and registration documents with you in advance so the registration can be submitted promptly when the VAT liability begins.
The special case: reverse charge
Not every service sold to a Swiss customer requires the foreign company to register for Swiss VAT.
For some services, the Swiss customer accounts for the Swiss VAT itself. This is called the reverse-charge mechanism (Swiss acquisition tax). In simple terms: the foreign company invoices without Swiss VAT, and the Swiss customer deals with the Swiss VAT on its side.
This can apply to certain:
- legal and advisory services;
- consulting and management services;
- advertising;
- data processing and certain IT services;
- licensing of intellectual property;
- staff leasing (only in certain circumstances).
Travelling to Switzerland for meetings does not automatically change this. For example, a German law firm advising a Swiss company on a cross-border transaction may hold meetings in Switzerland and still fall under the reverse-charge rules.
It is not about whether the supplier comes to Switzerland once or several times, or has one Swiss customer or several. What matters is the type of service being provided and the VAT rule that applies to that service.
Important: staff leasing must always be checked separately under Swiss employment law. Direct staff leasing from a foreign company into Switzerland is prohibited, apart from narrow exceptions.
What if we sell physical products to customers in Switzerland?
The VAT treatment of physical goods depends on how the sale, transport, import and any installation work are organised.
If goods are simply shipped from abroad and the Swiss customer acts as importer, Swiss import VAT is normally collected when the goods enter Switzerland. The foreign seller does not automatically need Swiss VAT registration simply because the goods are delivered to a Swiss address.
If the foreign seller installs, commissions, repairs or otherwise works on the goods in Switzerland, the VAT treatment can be different and Swiss VAT registration may become mandatory.
The same applies if the foreign seller chooses to act as importer and charge Swiss VAT directly to the customer.
Because the correct treatment depends on the exact delivery terms, who acts as importer and the role of each party, uncertain cases should always be checked with the Swiss Federal Tax Administration (FTA) or a qualified tax adviser before registration.
E-commerce special rules: when is a Swiss VAT representative mandatory — and when can voluntary registration make sense?
Unlike the general VAT rule for foreign businesses, the CHF 100,000 e-commerce threshold is not based on worldwide turnover. It is based on annual sales into Switzerland of qualifying small consignments.
a) You sell small consignments into Switzerland
A small consignment is a shipment for which the Swiss import VAT would be CHF 5 or less and is therefore not collected at the border.
At the current Swiss VAT rates, CHF 5 of import VAT corresponds to a taxable import value of approximately CHF 62 at the standard VAT rate of 8.1%, or CHF 193 at the reduced VAT rate of 2.6%, which applies to certain goods such as food, books and medicines. The taxable import value also includes relevant costs up to the destination in Switzerland, such as shipping costs.
Example: an online shop selling low-priced accessories may therefore be sending “small consignments”. A food retailer can have a higher parcel value and still fall within the small-consignment definition because many food products are taxed at the reduced 2.6% rate.
If your annual turnover from these qualifying small consignments shipped into Switzerland reaches CHF 100,000, Swiss VAT registration becomes mandatory.
From the following month, all your shipments to Swiss customers are treated as Swiss sales for VAT purposes — not only the small consignments. You charge Swiss VAT to your customers and import the goods in your own name.
If your business has no domicile or place of business in Switzerland, appointing a Swiss VAT representative is mandatory. Madronio can act as your Swiss VAT representative and submit the VAT registration with the Swiss Federal Tax Administration (FTA).
b) You sell higher-value products
If the Swiss import VAT due on a shipment is more than CHF 5, it is not a small consignment.
In the usual setup, the foreign seller exports the goods without charging its domestic VAT and the Swiss customer acts as importer.
When the parcel enters Switzerland, Swiss import VAT is calculated on the declared value of the goods and the relevant costs up to their destination in Switzerland. The customer will normally be charged this Swiss import VAT separately, potentially together with any customs-clearance fees charged by the carrier such as Swiss Post, DHL or UPS.
Example: a German online shop sells a CHF 120 hair dryer to a customer in Switzerland. The German seller normally exports the product without German VAT. When the parcel arrives in Switzerland, Swiss import VAT is collected because the amount exceeds CHF 5. If the Swiss customer is the importer, the customer normally pays this VAT separately from the original purchase.
These higher-value shipments do not count towards the special CHF 100,000 small-consignment threshold, because Swiss VAT is collected from the customer when the goods are imported.
This is a normal customs and VAT process, but it can create a less seamless customer experience: the customer pays the online retailer first and may then receive a separate VAT and clearance charge when the parcel enters Switzerland.
c) Voluntary VAT registration can improve the customer experience
A foreign online retailer may, in certain circumstances, choose to register voluntarily for Swiss VAT even when registration is not yet mandatory.
The seller can then structure the delivery so that it acts as importer itself and charges Swiss VAT directly to the customer. Instead of receiving a separate import VAT bill after the purchase, the customer can see and pay a clearer final price as part of the transaction.
For an e-commerce business targeting Swiss consumers, this can provide a simpler and more predictable buying experience.
If the foreign retailer registers for Swiss VAT and has no domicile or place of business in Switzerland, appointing a Swiss VAT representative is mandatory. Madronio can provide that representation and coordinate the registration with the Swiss Federal Tax Administration (FTA).
Because the correct VAT treatment can depend on the shipping model, delivery terms, who acts as importer, the products sold and whether an online platform is involved, uncertain cases should always be checked with the FTA or a qualified tax adviser before registration.
Legal basis: Swiss VAT Act, Art. 7(3)(b) and Art. 67(1); Swiss VAT Ordinance, Art. 4a.
Selling more and more into Switzerland? Talk to Madronio before you reach the threshold — or earlier if you want to consider voluntary Swiss VAT registration for a smoother customer experience.
What exactly does Madronio do?
As a general rule, when Swiss VAT registration is required, a foreign business without a Swiss domicile, registered office or permanent establishment must appoint a representative established in Switzerland. Madronio acts as that required Swiss VAT representative and central point of contact. We receive and coordinate official correspondence and, when VAT filings, accounting work or technical tax advice are needed, we organise the right specialist partner while remaining your central contact throughout the process.
What do we need from you to start the representation?
We will need your company details and current commercial register extract, the name of an authorised contact person, a description of your Swiss activity, your expected start date and information about your worldwide turnover. Depending on your situation, recent financial statements or a turnover forecast may also be required.
To complete the registration with the Swiss Federal Tax Administration (FTA), Madronio will prepare the official tax representation form (MWST-0620). Once signed by both you and Madronio, this form confirms to the FTA that you have appointed Madronio as your Swiss VAT representative.
Finally, Madronio will submit your VAT registration application to the Swiss Federal Tax Administration (FTA) on your behalf..
What happens if the Swiss Federal Tax Administration (FTA) asks for documents?
Madronio receives or coordinates the request and tells you what is needed and by when. Your company remains responsible for maintaining its accounting and supporting records. Documentation relevant to the Swiss VAT claim must be made available to the representative within a reasonable period if the Swiss Federal Tax Administration (FTA) asks for it.
Can Madronio also arrange VAT returns for us?
Yes. VAT return preparation and filing are available as an additional Madronio service and are quoted separately on a case-by-case basis, depending on the complexity and volume of the work. We coordinate the work with the appropriate fiduciary or tax adviser partner, while you continue to deal with Madronio as your central point of contact..
Can we work in our own language?
Madronio works with clients in English, German, French, Spanish and Italian, and we do our best to communicate in the language that is most comfortable for you. Where specialist tax or legal advice is required, we coordinate the appropriate qualified professional.
General information only. VAT treatment depends on the actual facts of each case. If your situation is unclear, it should be checked with the Swiss Federal Tax Administration (FTA) or a qualified tax adviser before registration. Legal basis: Swiss VAT Act, Arts. 10, 66 and 67; reverse charge/acquisition tax: Arts. 8(1), 10(2)(b)(2) and 45. Staff leasing: Employment Services Act, Art. 12(2). Official Swiss Federal Tax Administration (FTA) guidance ↗