How to Obtain a VAT Number for a Business in Switzerland: Step-by-Step Guide

If your company conducts commercial activities in Switzerland, obtaining a VAT number is a mandatory step to comply with tax regulations. A VAT number allows you not only to legally charge tax to your clients but also to benefit from tax deductions that reduce overall business expenses.

In this article, we will explain who is required to register, what documents are needed, and how to go through the registration process to obtain a VAT number in Switzerland.

What is a VAT Number?

VAT (Value Added Tax) is an indirect tax levied on goods and services sold in Switzerland. The VAT number is a unique identifier assigned to a company to track tax operations. Its main purpose is to ensure transparency and control over VAT payments.

Companies registered for VAT are obligated to:

• Collect tax on sales.
• Submit reports on their tax operations.
• Pay the collected tax to the state budget.

When is VAT Registration Required?

1. Annual Turnover Exceeds CHF 100,000

If your company’s annual turnover exceeds CHF 100,000, registration is mandatory. This rule applies to both local and international companies operating in Switzerland.

2. Voluntary Registration

Companies with an annual turnover below CHF 100,000 can voluntarily register to enjoy the following benefits:

• The right to deduct VAT from expenses.
• Increased trust from clients and partners.
• Easier access to international markets.

Exceptions

Certain activities, such as educational services or medical care, are exempt from VAT. However, companies engaged in these activities may still choose to register voluntarily to take advantage of tax deductions.

Steps to Obtain a VAT Number

Step 1: Determine the Need for Registration

Before starting the process, assess whether your company is required to obtain a VAT number. This depends on:

• Your annual turnover.
• The nature of the goods or services provided.
• The presence of offices or branches in Switzerland.

If you’re unsure whether your company meets the requirements, consult a tax advisor.

Step 2: Gather Necessary Documents

The following documents are required for registration:

• Complete company information: legal name, address, and contact details.
• Trade register number (if the company is registered in Switzerland).
• Financial data, including turnover from sales within and outside Switzerland.
• For foreign companies: information about a tax representative in Switzerland and confirmation of their authority.

Step 3: Complete the Registration Form

The VAT registration application is submitted via a specific form provided by the Swiss tax authorities.

Step 4: Submit the Application

You can submit your application in one of two ways:

• Online Portal: This is the fastest way to submit your documents.
• By Post: Send the completed form along with the attached documents to the appropriate tax authority. Although rarely used in Switzerland nowadays, this option is still available.

Step 5: Receive the VAT Number

After submission, the tax office reviews the documents and assigns a VAT number. This process typically takes about two to three weeks. Confirmation is sent via email or letter.

Features for Foreign Companies

Foreign companies without a branch in Switzerland must appoint a tax representative. This representative will:

• Maintain communication with tax authorities.
• Pay taxes on behalf of the company.
• Ensure compliance with all tax obligations.

To confirm the representative’s authority, you will need:

• A power of attorney signed by an authorized person from the company.
• Copies of the company’s registration documents.

Advantages of Having a VAT Number

Obtaining a VAT number provides several key benefits for a company:

• Right to Tax Deductions: You can reclaim VAT paid on business expenses, such as rent, transportation, and material purchases.
• Legal Compliance: The company can legally charge VAT to clients in accordance with the law.
• Enhanced Reputation: Having a VAT number builds trust with partners and clients, especially in international trade.

Conclusion

Obtaining a VAT number in Switzerland is an essential step for companies doing business in the country. The process involves collecting documents, completing forms, and interacting with tax authorities. With proper preparation, registration is quick and opens up benefits that help your business grow.

If you’re unsure about the registration process or want to minimize risks, seek professional assistance. Our experts will guide you through every stage of obtaining your VAT number.

Frequently Asked Questions (FAQ)

1. Is it mandatory to obtain a VAT number in Switzerland? Yes, if your annual turnover exceeds CHF 100,000 or you wish to benefit from tax deductions, registration is mandatory.
2. How long does it take to process the application? Processing usually takes about two to three weeks, but timelines may vary depending on the tax authority.
3. Can I register if my company is based outside of Switzerland? Yes, foreign companies can register for VAT in Switzerland, provided they appoint a tax representative.

If you need assistance with VAT registration or advice on doing business in Switzerland, contact our team. We provide professional support at every stage!