You can follow this conversation by subscribing to the comment feed for this post. What would have been the VAT impact of being part of the EU? Rate Type Which goods or services; 7.7%: Standard: All other taxable goods and services: 3.7%: A Value-Added Tax (VAT) is a consumption tax assessed on the value added in each production stage of a good or service. Is VAT recovery permitted for non-established non-EU businesses? VAT registration in Switzerland Your comment has not yet been posted. As our client, you will now have the following rights: The website www.vatexpertsineurope.com is owned by Accountancy In Europe.com Ltd. Accountancy In Europe.com Ltd’s Privacy Policy has been updated in line with the new data protection laws in GDPR. It is mandatory to procure user consent prior to running these cookies on your website. Any company established outside of Switzerland must appoint a tax representative to register for VAT in the country. This means that a business’s revenue of taxable goods and services must be above a certain value before it is required to register and pay a VAT on its products. This category only includes cookies that ensures basic functionalities and security features of the website. Would you consider contributing to our work? Explore our updated web tool to compare tax codes across the developed world. Please see About Deloitte to learn more about our global network of member firms. Switzerland Tax Services & VAT Consultancy. 1325 G St NW According to EU law, EU Member States are required to levy a standard VAT rate of at least 15 percent and a reduced rate of at least 5 percent. Supplies of goods to/from Switzerland from/to another EU Member State would not qualify as imports/exports but intra-EU acquisitions/supplies, which are subject to strict rules (notably the VAT exemption for intra-EU supplies) and reporting obligations, VAT rates would be significantly higher. Source: OECD (http://www.oecd.org/tax/tax-policy/tax-database.htm#VATTables). Read moreShall We Call You* ---YesNoSubscribe to our newsletter* ---YesNo, Accountancy In Europe Ltd and its subsidiaries will use your email address to provide business news, offers and services we think will be of interest. VAT deductions and refunds also have a period of 5 years. The current VAT system was introduced in Switzerland in 1995.At the moment it is placed under the guidance of the Federal Tax Administration, that established the rules related to the returns, compliance and registration of Swiss VAT for non-resident traders. Our work depends on support from members of the public like you. Error type: Your comment has been saved. We also use third-party cookies that help us analyze and understand how you use this website. For Switzerland, the higher EU VAT rate would imply price increases in almost all daily goods and services and some businesses would be affected as well. The potential for easy administration, significant tax revenue, and few economic distortions make the VAT one of the most efficient forms of taxation. Sign In, You are currently signed in as This is only a preview. This website uses cookies to improve your experience while you navigate through the website. All rights reserved. Switzerland , as a non-EU country, levies the lowest VAT rate of only 7.7 percent, followed by Luxembourg (17 percent), Turkey (18 percent), and Germany (19 percent). Comments are moderated and will not appear until approved by the author. Switzerland. In the EU Switzerland would have been part of the European single market and would have had to comply with Directive 2006/112/EC (VAT Directive). The Tax Foundation works hard to provide insightful tax policy analysis. If you would like to discuss more on this topic, please do reach out our key contacts below. Every business along the value chain receives a tax credit for the VAT already paid. We may share your data where required to be disclosed by law, by any government or other regulatory authority or by a court or other authority of competent jurisdiction provided that and only to the extent it is legally permitted to do so. Get all the latest global tax news and analysis sent directly to your inbox. recapitulative statements for intra-EU transactions, intrastat returns, etc. For Switzerland, the higher EU VAT rate would imply price increases in almost all daily goods and services and some businesses would be affected as well. Yes, but only when a reciprocity agreement is in place. We will not share your information with any 3rd parties. Relief from collection and/or registration may be available to specific industries or types of traders (for example nonresident suppliers) under more detailed rules, or a specific industry or type of trader may be subject to more stringent registration and collection requirements. You also have the option to opt-out of these cookies. The period of VAT recovery by tax authorities has a timescale of 5 years. GDPR also addresses the export of personal data outside the EU. In Spain and Turkey, all businesses, regardless of their revenue, are required to register and pay a VAT. Use and enjoyment rules do not apply in Switzerland. The average VAT rate of the European countries covered is 21.3 percent. Would you consider telling us more about how we can do better? Stay up on the tax news and analysis that matters to you. On the other hand, French and Swiss businesses are only exempt from VAT registration if their revenues stay below considerably high thresholds of € 82,200 and € 86,580, respectively. We'll assume you're ok with this, but you can opt-out if you wish. Email address will not be displayed with the comment.). For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.

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