VAT obligation and fiscal representation for foreign companies in Switzerland

Are you a company based abroad and active in Switzerland, or planning to enter the lucrative Swiss sales market soon? Then you should consider enlisting the services of a Swiss fiscal representative. But what is a fiscal representative and why do you need one?

In this article, you will find out everything you need to know about fiscal representation in Switzerland, and what you need to consider as a foreign entrepreneur with respect to Swiss VAT.

What is a fiscal representative?

A fiscal representative (aka “tax representative”) is an authorized natural or legal person appointed by a foreign company to fulfil tax-related obligations on their behalf in a specific country. In Switzerland, a fiscal representative acts as an intermediary between the foreign company and the Swiss tax authorities or the Federal Customs Administration, ensuring compliance with the country’s tax laws and regulations. Among other duties, the fiscal representative assumes all VAT-related obligations with the Swiss Federal Tax Authority on behalf of the foreign company.

When do foreign companies need to register for VAT in Switzerland?

Foreign companies must register for Swiss VAT once they provide taxable supplies in Switzerland and their worldwide annual turnover exceeds CHF 100,000. VAT registration is required regardless of whether the company has a physical presence in Switzerland; only the nature of the business activities matters.

Prior to 2018, foreign companies with a turnover of less than CHF 100,000 in Switzerland were not required to register for Swiss VAT themselves and could therefore conduct their business without a fiscal representative in Switzerland or a Swiss VAT number.

However, since the reform of Swiss VAT law, all foreign companies that provide taxable services in Switzerland and have a worldwide turnover of more than CHF 100,000 per year are subject to VAT in Switzerland. Only foreign companies whose worldwide annual turnover is less than CHF 100,000 are exempt from VAT.

Taxable supplies include, but are not limited to, the following activities:

• Operating a warehouse in Switzerland
• Provision of services under a contract for work and services
• Carrying out work on objects such as assembly, installation or maintenance of objects
• Digital services, e.g. electronic provision of software or music
• Other physical activities in Switzerland
• Eligible mail-order sales in Switzerland

Among others, companies domiciled abroad that provide services in Switzerland that are exclusively subject to purchase tax, such as consultancy services or services in the field of advertising, are exempt from taxation. Also exempt from tax are foreign companies that exclusively supply electricity and natural gas in pipelines to taxable persons in Switzerland. Such electricity and gas suppliers do not have to register as taxable persons in Switzerland.

Switzerland does not allow non-resident companies to directly register for VAT. Therefore, foreign businesses who have neither a place of residence nor a place of business in Switzerland need to appoint a fiscal representative to fulfil their Swiss VAT obligations.

What are the functions of a fiscal representative?

The fiscal representative serves as the official point of contact between your company and the Swiss Federal Tax Administration. Their core responsibilities include managing VAT registration, ensuring timely filings, and maintaining compliance with all Swiss VAT regulations on your behalf.

A fiscal representative in Switzerland carries out several crucial functions on behalf of the foreign company. These include:

1. Assessment of VAT liability in Switzerland: The first function of a fiscal representative is to determine whether the foreign company is liable for VAT in Switzerland based on their business activities and annual turnover.
2. VAT registration: If it is deemed that the company is liable for Swiss VAT, the fiscal representative assists the foreign company in registering for VAT with the Swiss Federal Tax Administration (FTA). They handle the application process, ensuring that all necessary documentation is submitted correctly.
3. Tax compliance and filing of the VAT return: The representative ensures that the foreign company remains compliant with Swiss VAT regulations. This includes preparation and submission of quarterly VAT returns on a timely basis, maintaining important records, and communicating with the Swiss tax authorities on applicable tax-related matters. The representative can also help to make a subsequent declaration without penalty if the mandatory VAT liability in Switzerland already existed at an earlier point in time.
4. Representation: The fiscal representative acts as the official representative of the foreign company in all VAT-related matters. They communicate with the tax authorities, respond to inquiries, and handle any disputes or audits on behalf of the company.
5. Ongoing advice: the representative is there to provide the company with ongoing advice on all its tax-related matters in Switzerland based on an analysis of the company’s individual situation and needs.

How much does fiscal representation in Switzerland cost?

The cost of fiscal representation in Switzerland can vary depending on various factors, including the complexity of the company’s operations, the volume of transactions, and the services provided by the chosen representative.

At Nexova AG, we charge a competitive rate for our fiscal representation services; which includes a one-time registration fee of CHF 500 and an annual fee of CHF 1500. Foreign companies looking for fiscal representation in Switzerland need to consider the costs involved, and at the same time ensure that they choose a reputable fiscal representative with a proven track record.

With Nexova, you get a dedicated Swiss-based team that handles everything from initial registration to ongoing compliance at a transparent, fixed rate.

What are the current Swiss VAT rates?

Switzerland applies three VAT rates as of 2026: the standard rate of 8.1% (applicable to most goods and services), the reduced rate of 2.6% (for essentials like food, books, and medicines), and the accommodation rate of 3.8% (for hotel stays and similar services). Some goods and services are completely exempt from VAT. Foreign companies need to understand which rates and exemptions apply to their specific industry and activities.

Read more here for in-depth information on what foreign companies need to consider with respect to their VAT liability in Switzerland.

VAT registration with a fiscal representative

As mentioned, foreign companies who are liable for VAT in Switzerland must register through their appointed fiscal representative. The representative will handle the registration process, ensuring that all required information is submitted accurately and on time.

During the VAT registration process, the fiscal representative provides the necessary details about the foreign company, such as its legal form, business activities, turnover, and contact information. This information is mandatory for the Swiss tax authorities to assess the company’s VAT liability and monitor compliance.

As of 2025, all VAT registrations must be completed electronically through the FTA’s ePortal. Paper-based registration is no longer accepted. The registration process takes approximately four weeks from submission of a complete application.

VAT statement

Once the foreign company is registered for VAT in Switzerland, they are required to submit regular VAT statements to the tax authorities. The VAT statement contains detailed information about the company’s taxable supplies, VAT-liable transactions, and input tax credits. It also provides a comprehensive overview of the company’s VAT activities on a quarterly basis.

The fiscal representative plays a major role in ensuring that the company’s VAT statement is accurate, complete, and compliant with Swiss tax regulations. They work closely with the company to ensure that the VAT statement is submitted timeously and correctly.

From 1 January 2025, SMEs with annual turnover below CHF 5,005,000 may request annual VAT filing instead of quarterly submissions, subject to FTA approval and a clean compliance history. This option is available under both the effective method and the net tax rate method.

What changed in 2025 for fiscal representation requirements?

The 2025 partial revision of the Swiss VAT Act introduced the possibility for certain foreign businesses to register for VAT without appointing a fiscal representative. However, this exemption is primarily available to online platform operators that can demonstrate compliance with FTA conditions. Most foreign businesses still require a Swiss-domiciled fiscal representative.

Key 2025 changes affecting foreign companies include:

• Platform taxation (deemed supplier model): Online marketplaces selling goods to Swiss customers now bear VAT collection responsibility, shifting the obligation from individual sellers to the platform. This means that even if you as an individual seller are below the CHF 100,000 threshold for small consignments, VAT will still be collected on your sales if they are made through a qualifying platform.
• Annual filing option: Eligible SMEs can now file VAT returns annually instead of quarterly.
• Electronic portal requirement: All VAT registrations and filings must be completed through the FTA’s ePortal.
• New VAT exemptions: Travel agency services, care coordination, and certain healthcare services are newly exempt from Swiss VAT.

According to PWC Switzerland, the FTA may waive the fiscal representative requirement if procedural compliance is ensured through other means, though this option is currently limited primarily to qualifying online platforms.