From the beginning of 2018, foreign companies providing services in Switzerland must submit to VAT if the world turnover is equal to or greater than CHF 100,000. Until 12.31.2017, the business turnover in Switzerland was valid. A company must, therefore, open a VAT number with the Swiss federal administration. If the company does not have a domicile or registered office in Switzerland, it must be represented by a tax representative domiciled in Switzerland. The subjection concerns whoever exercises a business, that is, carries out an independent, professional or commercial activity, with the purpose of generating income and acting in its own name.
When VAT payers are registered, taxpayers must provide a guarantee. As a rule, this guarantee is provided in cash or as a guarantee issued by a bank established in Switzerland. The required guarantee is calculated on the expected amount of taxable turnover realized on Swiss territory. In special cases the Federal Contribution Administration (AFC) reserves the right to calculate the amount of the guarantee differently.
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