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Switzerland: VAT-registered foreign companies not required to declare worldwide turnover

Switzerland: VAT-registered foreign companies

The Swiss federal tax authority published a first draft of updated guidance in relation to foreign companies and value added tax (VAT). The information has been collated in a new booklet as “VAT Info 22” with the title “Foreign Companies.”


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The updated guidance provides clear direction and certainty with regard to questions about the declaration of turnover under the new reporting rules for foreign companies in relation to their worldwide turnover. Under the updated guidance, foreign companies that are VAT-registered in Switzerland are only required to report their turnover in connection with their supplies in Switzerland. They are no longer required to make a declaration of their worldwide turnover.

Nevertheless, certain earnings or income generated abroad still may be required to be taken into consideration and could lead to a restriction of the Swiss input VAT recovery.

KPMG observation

The VAT guidance has been published as a first draft. However, tax professionals do not expect major changes or amendments.

Read a May 2019 report prepared by the KPMG member firm in Switzerland

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