Good news! The Federal Tax Authority has published the much-awaited update of their guidance in relation to foreign companies. All the relevant information has been collated in a new booklet as VAT Info 22 and entitled ‘Foreign Companies’.
This move is very much welcomed as it provides clear direction (certainty) to questions such as the declaration of turnover. You may recall our blog from last September where we briefly explained the new reporting and rather complex rules for foreign companies in relation to their worldwide turnover. As we expected and anticipated any foreign companies that are VAT registered in Switzerland are only required to report their turnover in connection with their supplies in Switzerland. The declaration of their worldwide turnover is no longer required.
Please note that certain earnings or income that have been generated abroad may still have to be taken into consideration and could lead to a restriction of the Swiss input VAT recovery.
The VAT guidance has been published as a first draft but we do not expect mayor changes/amendments and highly recommend that you check out this new information.