Invoicing obligations for foreign companies operating in Switzerland

Who is concerned? Foreign companies subject to Swiss rules

A foreign company must comply with Swiss invoicing rules as soon as it conducts economic activity on Swiss territory. Several criteria trigger this obligation.

Physical presence: An office, branch or permanent establishment in Switzerland automatically subjects you to local rules.

Delivery of goods: If you sell and deliver goods in Switzerland, you are concerned, even without a physical presence.

Service provision: When the place of supply is located in Switzerland (particularly for B2B services), Swiss rules apply.

Turnover thresholds: Exceeding CHF 100,000 in annual turnover in Switzerland generally triggers VAT registration.

A permanent establishment is distinguished from occasional activity by its permanence and organisation. To learn more about the Swiss system, consult our guide on VAT and invoicing in Switzerland.

The obligation to register for VAT in Switzerland

Foreign companies operating in Switzerland must register for VAT as soon as their annual turnover exceeds CHF 100,000. This threshold applies to turnover generated on Swiss territory only.

Mandatory registration: Beyond the threshold, registration becomes a legal obligation.

Voluntary registration: You can register voluntarily even below the threshold, particularly to recover VAT on your purchases.

The registration procedure is done with the Federal Tax Administration (FTA). You will need to provide identification documents, a description of your activity and turnover estimates.

Processing times vary from a few weeks to several months. Once registered, you receive a Swiss VAT number in the format CHE-XXX.XXX.XXX VAT, mandatory on all your invoices.

Mandatory information on invoices issued in Switzerland

A compliant invoice in Switzerland must contain precise legal information, whether you are a Swiss or foreign company.

Complete contact details: Company name, complete address of the issuer and recipient.

VAT number: Your CHE-XXX.XXX.XXX VAT number if you are registered.

Date and number: Issue date and unique, continuous invoice number without gaps.

Detailed description: Nature of goods delivered or services provided.

Amounts and VAT: Amounts excluding tax and including all taxes, with indication of rates applied (8.1%, 3.8% or 2.6%).

These elements guarantee the tax validity of your documents. For a comprehensive list, consult our article on mandatory legal information.

The QR-bill: a specific obligation in Switzerland

Since July 2020, the QR-bill has become the standard for all payments in Switzerland. It replaces the orange and red payment slips.

The QR code contains all payment information: beneficiary's IBAN, structured reference, amount, complete contact details and currency. This standardisation facilitates automated payments and reduces errors.

Obligation for foreign companies: Even if your company is based abroad, you must issue QR-bills for your Swiss clients. The absence of a QR code complicates payment and may delay your collections.

BePaid automatically generates QR-bills compliant with Swiss standards. You only need to fill in the basic information, and the system creates the QR code with all the required elements.

VAT and invoicing: special cases for foreign companies

Foreign companies face specific situations depending on the nature of their activity in Switzerland. Three main cases require particular attention.

Each configuration involves different VAT application rules and distinct declaration obligations. Understanding these nuances helps you avoid costly errors and tax adjustments.

The following sections detail these three situations: delivery of goods, service provision and exemption cases. For general aspects of international invoicing, our guide on international invoices provides useful additional information.

Delivery of goods in Switzerland

The delivery of goods on Swiss territory is always subject to Swiss VAT, regardless of the supplier's nationality.

If you import goods into Switzerland to sell them, you must declare these imports and pay VAT on importation. This VAT can be recovered if you are registered as a taxable person.

Obligation to invoice with VAT: Once registered for VAT, you must invoice your Swiss clients by applying the appropriate rate (generally 8.1%).

Import rules vary according to the value of goods and their origin. Free trade agreements may simplify certain procedures, but do not exempt from Swiss VAT on sales made in Switzerland.

Service provision: determining the place of supply

The place of supply determines whether you must apply Swiss VAT or that of your country. The rules differ according to your client.

B2B services (business to business): The recipient principle applies. If your client is a Swiss company registered for VAT, the place of supply is in Switzerland. You invoice without VAT, and your client applies the reverse charge mechanism. This may also apply to an individual.

Concrete examples: Consulting services, web development, online training follow these rules. To explore these mechanisms further, consult our article on VAT on exports.

Invoices without VAT: exemption cases

Certain situations allow a foreign company to invoice without applying Swiss VAT.

Turnover below the threshold: If you generate less than CHF 100,000 in Switzerland and are not voluntarily registered, you invoice without VAT.

Services outside the territory: Services whose place of supply is located outside Switzerland are not subject to Swiss VAT.

Exports: Deliveries of goods exported outside Switzerland are exempt from Swiss VAT (0% rate).

Mandatory information: Clearly indicate on your invoices the reason for the absence of VAT: "VAT not applicable" or "Service exempt from VAT". Our guide on international invoices details this information.

VAT declaration and payment obligations

Once registered for VAT, you must regularly declare your turnover and remit the collected VAT to the FTA.

Frequency: Declarations are quarterly for turnover up to CHF 5 million, half-yearly beyond that. You can opt for monthly declaration if you prefer.

VAT statement: You declare the VAT collected on your sales and deduct the VAT paid on your purchases (input tax). The difference must be paid to the FTA.

Deadlines: The statement must be filed within 60 days following the end of the period. Payment follows the same deadline.

Penalties: Delays result in default interest and fines.

BePaid helps you track your VAT amounts, but does not replace an accountant for official declarations.

Retention and archiving of invoices: legal rules

In Switzerland, all companies must retain their accounting documents for 10 years. This obligation also applies to foreign companies operating in Switzerland.

Accepted formats: Invoices can be retained in paper or electronic format. Both have the same legal value, provided their authenticity and readability are guaranteed.

Electronic invoices: They must be stored securely, with traceability and protection against modifications. Access must be guaranteed throughout the retention period.

BePaid automatically archives all your invoices securely in the cloud. You can access them at any time, and they remain compliant with legal requirements.

To understand all accounting obligations, consult our article on legal accounting obligations.

Tax representation: when is it necessary?

Some foreign companies must appoint a tax representative in Switzerland to manage their VAT obligations.

When is it mandatory? Generally when you do not have a permanent establishment in Switzerland but are subject to VAT. The tax representative becomes jointly liable for the payment of your VAT.

Role of the representative: They act as an intermediary between you and the FTA, file your VAT statements and guarantee payment of amounts due.

Exceptions: Companies established in the EU or in certain countries that have concluded agreements with Switzerland can often do without a tax representative.

Appointment: The representative must be domiciled in Switzerland and formally accept this role. The FTA must validate this appointment.

Practical advice to remain compliant

Here is a concrete checklist to guarantee your compliance as a foreign company operating in Switzerland:

• Check the thresholds: Calculate your projected turnover in Switzerland to determine whether you must register for VAT.

• Register on time: Do not exceed the threshold without being registered. Anticipate the FTA's processing times.

• Use a compliant tool: BePaid automatically generates compliant QR-bills and helps you track your obligations.

• Consult a tax expert: For complex situations, a specialist will help you avoid costly errors.

• Keep rigorous accounts: Document all your transactions and retain your supporting documents.

• Respect deadlines: File your VAT statements on time to avoid penalties and interest.

Anticipation is key: inform yourself before starting your activity in Switzerland.

Invoicing in Switzerland as a foreign company involves complying with strict rules: VAT registration according to your activity, mandatory information on your invoices, use of the QR-bill for payments in Swiss francs, and retention of documents for ten years. Obligations vary depending on whether you deliver goods or provide services, and certain cases require the appointment of a tax representative.

The complexity of these requirements may seem daunting, but good organisation and the right tools considerably simplify the task. BePaid allows you to create invoices compliant with Swiss standards, with integrated QR codes, automatic management of VAT at current rates, and precise tracking of your payments and reminders. Our platform adapts to the needs of foreign companies operating in Switzerland, with an intuitive interface and comprehensive accounting exports.

Test BePaid for free and create your first compliant Swiss invoices in a few clicks, without commitment and without hidden fees.