International invoices: VAT and compliance for foreign clients

The basic rules of international invoicing from Switzerland

When you invoice a foreign client from Switzerland, the general principle is Swiss VAT exemption for exports. But be careful: this rule varies depending on the type of transaction.

For supply of goods, the exemption applies if you can prove that the goods have left Swiss territory. For supply of services, the place of taxation depends on the nature of the service and the client's status (B2B or B2C).

In all cases, you must keep complete documentation to justify the exemption: contracts, proof of delivery, customs documents. The FTA can check these elements up to 10 years after the transaction.

To explore the specific exemption conditions and rules according to the type of service, consult our detailed guide on VAT on exports.

VAT and obligations according to geographical areas

The VAT rules for your international invoices vary considerably depending on your client's geographical area. Each region applies its own tax mechanisms and documentary obligations.

The European Union operates with a harmonised reverse charge system. The United Kingdom, since Brexit, imposes new formalities. Non-EU countries present highly variable rules depending on the jurisdiction.

Understanding these differences is essential to invoice correctly and avoid tax compliance problems in your clients' countries.

European Union (EU): reverse charge mechanism

For B2B services to the EU, the reverse charge mechanism applies. You invoice without Swiss VAT, and it is your European client who declares and pays VAT in their country.

You must include your client's intra-Community VAT number on the invoice. Verify its validity via the VIES system before invoicing.

For sales of goods, the rules are more complex. If you exceed certain distance selling thresholds (10,000 EUR for the entire EU), you may need to register for VAT in the destination country.

Add a note on your invoice such as: "Reverse charge, VAT due by the recipient in accordance with Article 196 of Directive 2006/112/EC".

United Kingdom post-Brexit: new formalities

Since the United Kingdom left the EU, the country is treated as a third country. B2B services follow the reverse charge principle, as for the EU.

For sales of goods, complete customs formalities are now necessary. If you sell regularly to the United Kingdom and exceed the threshold of 85,000 GBP, you will need to obtain a UK VAT number and charge local VAT.

The rules for digital services and e-commerce are particularly strict. Check the registration thresholds according to your specific activity.

Non-EU countries: variable rules according to jurisdiction

For international invoices to non-EU countries, each jurisdiction applies its own rules. The United States, Canada, Australia, Gulf countries and Asia have very different tax systems.

In the United States, sales tax varies by state. Some states require tax registration if you exceed economic thresholds (economic nexus), even without physical presence.

In Canada, GST/HST may apply depending on the province and type of service. Australia imposes GST on digital services from the first dollar for foreign suppliers.

For Gulf countries (Emirates, Saudi Arabia), local VAT may apply depending on the nature of the service. In Asia, rules vary considerably: Singapore, Hong Kong, Japan and China each have their own systems.

Practical advice: consult a local tax expert before invoicing regularly in a non-EU country.

Mandatory documentation for your international invoices

A compliant international invoice requires more comprehensive documentation than a domestic invoice. The objective: to prove the legitimacy of the VAT exemption and comply with tax obligations in the client's country.

Two types of documents are essential: the mandatory information on the invoice itself, and the supporting documents to keep for tax audits.

Incomplete documentation can result in the FTA refusing the VAT exemption, with significant financial consequences. Be rigorous from the first invoice.

Mandatory information on the invoice

Your international invoice must include all the information of a standard Swiss invoice, plus specific elements:

• Complete identification: name, address and Swiss VAT number for you; name, address and foreign VAT number for the client (if applicable)
• Invoicing currency: clearly indicate the currency used (CHF, EUR, USD, etc.)
• Precise description: detail the goods delivered or services provided
• VAT exemption note: "Exempt from Swiss VAT, Export" or "Reverse charge, VAT due by the recipient"
• Legal basis: reference to the applicable article (Art. 23 VAT Act for export)
• Payment terms: deadline, methods, possible penalties
• Incoterms: for goods, specify delivery conditions (EXW, FOB, DDP, etc.)

For invoicing in foreign currencies, consult our guide on managing multi-currency.

Supporting documents to keep

Beyond the invoice, you must keep proof of export to justify the Swiss VAT exemption:

• Customs documents: export declaration with customs stamp, export accompanying document (EAD)
• Proof of delivery: signed delivery note, transport tracking, confirmation of receipt
• Contracts: orders, purchase orders, accepted general conditions
• Correspondence: emails confirming the transaction and destination
• Payment confirmation: bank statements, payment notices

These documents must be kept for 10 years in Switzerland. The FTA can request them during a tax audit. Organise a rigorous filing system, ideally digital to facilitate searches.

Tip: scan and archive all documents upon receipt to avoid losses.

Managing foreign VAT: when must you register?

Invoicing without Swiss VAT does not always mean you have no VAT obligation abroad. In certain situations, you will need to register for tax purposes in your client's country.

Registration for foreign VAT depends on three factors: the type of service (goods or services), physical presence in the country, and local turnover thresholds.

Ignoring these obligations can result in significant penalties and complex tax regularisations. Anticipate these situations as soon as you develop regular international activity.

Services with physical presence

As soon as you perform a service on site in a foreign country, the rules change. Training, consultancy with physical intervention, or equipment installation are generally subject to local VAT.

In France, for example, you must register for French VAT if you regularly perform services on the territory. For a one-off intervention, a simplified declaration may suffice.

In Germany, the registration threshold is 0 EUR for services with physical presence. You must obtain a German VAT number from the first intervention.

In Italy, similar rules apply, with the possibility of appointing a tax representative to simplify procedures.

Advice: consult a local tax expert before your first intervention to clarify your obligations.

Online sales and digital services

Digital services (SaaS, online training, downloads) and e-commerce follow specific rules. In the EU, the OSS (One Stop Shop) system simplifies declarations.

If you sell digital services to European individuals and exceed 10,000 EUR annual turnover for the entire EU, you must charge VAT in the client's country. The OSS allows you to declare all these VATs via a single portal.

For e-commerce of goods, distance selling thresholds apply. Beyond 10,000 EUR, you must charge local VAT and potentially register in each country.

Marketplaces (Amazon, eBay) have specific obligations: they may be considered deemed sellers and collect VAT on your behalf in certain cases.

Warning: each non-EU country has its own rules. The United States, Australia and the United Kingdom impose obligations from the first dollar for certain digital services.

Practical cases and examples of international invoicing

To understand how to apply these rules properly, here are three concrete scenarios of international invoicing with the exact information to include on your invoices.

These examples cover the most common situations: B2B services, sale of goods, and on-site interventions. Adapt them to your specific context.

Example 1: B2B consultancy service for a German client

Situation: You invoice 5,000 EUR for strategic consultancy to a German company, without physical intervention in Germany.

Invoice: Amount excl. VAT 5,000 EUR, VAT 0%, Total 5,000 EUR.

Mandatory information:

• Your Swiss VAT number: CHE-123.456.789 VAT
• Client's German VAT number: DE123456789
• Note: "Reverse charge, VAT due by the recipient in accordance with Article 196 of Directive 2006/112/EC"

Result: No Swiss VAT, no German VAT to collect. Your client declares and pays German VAT.

Example 2: Sale of goods to an American client

Situation: You sell 10,000 USD of IT equipment to an American company, delivery from Switzerland.

Invoice: Amount excl. VAT 10,000 USD, VAT 0%, Total 10,000 USD. Incoterm: EXW Zurich.

Mandatory information:

• Note: "Exempt from Swiss VAT, Export (Art. 23 VAT Act)"
• Precise Incoterm (EXW, FOB, etc.)

Documents to keep: Export declaration with customs stamp, proof of delivery, payment confirmation.

Result: No Swiss VAT, no tax obligation in the United States for a simple export (unless you exceed economic nexus thresholds in certain states).

Example 3: On-site training in France

Situation: You provide 3-day training at a French client's premises for 3,000 EUR.

Invoice: Amount excl. VAT 3,000 EUR, French VAT 20% = 600 EUR, Total incl. VAT 3,600 EUR.

Mandatory information:

• Your French VAT number (if registered) or note "VAT not applicable, Service provider not established in France"
• If regular activity: obligation to obtain a French VAT number
• If one-off: simplified CA3 declaration possible

Result: French VAT to collect and remit. No Swiss VAT (service performed abroad). You must declare this VAT to the French authorities.

How BePaid simplifies your international invoicing

Managing international invoices with different currencies, VAT rules and specific information can quickly become complex. BePaid helps you structure this management without multiplying tools.

Multi-currency invoicing: Create your invoices in EUR, USD, GBP or any other currency. The system automatically manages conversions for your accounting. Consult our guide on invoicing in foreign currencies for more details.

Customised VAT management: Set up specific VAT notes according to the destination country (exemption, reverse charge, local VAT). No need to manually modify each invoice.

Complete client records: Record your clients' foreign VAT numbers, their country, and their invoicing conditions. BePaid automatically applies the correct rules.

Accounting exports: Export your international invoices with all the information necessary for your accountant or fiduciary. Format compatible with the main Swiss accounting software.

Discover all the VAT features on our page dedicated to VAT management.

BePaid does not replace tax advice for complex situations, but gives you the tools to invoice correctly and save time on administration.

International invoicing from Switzerland requires particular attention to VAT rules and documentary obligations. Each geographical area applies its own rules: reverse charge for the EU, post-Brexit formalities for the United Kingdom, variable regulations outside Europe. The key to success lies in rigorous documentation and complete mandatory information on your invoices.

Systematically keep your export supporting documents and check whether you need to register for VAT in countries where you have a physical presence or exceed certain sales thresholds. The practical cases show that the same service can be treated differently depending on the client and their location.

BePaid simplifies your international invoicing with compliant templates, automated VAT management according to geographical areas and support for foreign currencies. Create your international invoices in a few clicks, with legal information adapted to each situation. Try BePaid for free and invoice your foreign clients in full compliance.