{"id":10648,"date":"2026-02-13T17:05:01","date_gmt":"2026-02-13T16:05:01","guid":{"rendered":"https:\/\/my-swiss-company.com\/?p=10648"},"modified":"2026-03-31T14:21:43","modified_gmt":"2026-03-31T12:21:43","slug":"invoicing-in-switzerland-by-a-foreign-company","status":"publish","type":"post","link":"https:\/\/my-swiss-company.com\/en\/invoicing-in-switzerland-by-a-foreign-company\/","title":{"rendered":"Invoicing in Switzerland by a Foreign Company"},"content":{"rendered":"<h1 data-start=\"220\" data-end=\"269\">Invoicing in Switzerland by a Foreign Company<\/h1>\n<h2 data-start=\"270\" data-end=\"345\">VAT Rules, Permanent Establishment Risks and Formal Invoice Requirements<\/h2>\n<p data-start=\"347\" data-end=\"553\">Invoicing Swiss clients from a foreign company is fully possible. However, it requires a precise legal and VAT analysis to avoid tax reassessments, penalties, or unintended permanent establishment exposure.<\/p>\n<p data-start=\"555\" data-end=\"611\">Three key elements determine the applicable obligations:<\/p>\n<ul data-start=\"613\" data-end=\"759\">\n<li data-start=\"613\" data-end=\"666\">\n<p data-start=\"615\" data-end=\"666\">The nature of the transaction (services or goods)<\/p>\n<\/li>\n<li data-start=\"667\" data-end=\"702\">\n<p data-start=\"669\" data-end=\"702\">The type of client (B2B or B2C)<\/p>\n<\/li>\n<li data-start=\"703\" data-end=\"759\">\n<p data-start=\"705\" data-end=\"759\">The existence of an economic presence in Switzerland<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"761\" data-end=\"764\" \/>\n<h1 data-start=\"766\" data-end=\"822\">I. VAT Treatment of Services Supplied to Swiss Clients<\/h1>\n<h2 data-start=\"824\" data-end=\"868\">1. B2B Services (Swiss Company as Client)<\/h2>\n<h3 data-start=\"870\" data-end=\"904\">General Rule \u2013 Place of Supply<\/h3>\n<p data-start=\"906\" data-end=\"1042\">Under Article 8 of the Swiss VAT Act (LTVA), the place of supply for services is generally the place where the recipient is established.<\/p>\n<p data-start=\"1044\" data-end=\"1066\">Practical consequence:<\/p>\n<ul data-start=\"1068\" data-end=\"1221\">\n<li data-start=\"1068\" data-end=\"1120\">\n<p data-start=\"1070\" data-end=\"1120\">The foreign company invoices without foreign VAT<\/p>\n<\/li>\n<li data-start=\"1121\" data-end=\"1148\">\n<p data-start=\"1123\" data-end=\"1148\">No Swiss VAT is charged<\/p>\n<\/li>\n<li data-start=\"1149\" data-end=\"1221\">\n<p data-start=\"1151\" data-end=\"1221\">The Swiss client accounts for VAT under the reverse charge mechanism<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1223\" data-end=\"1256\">This applies to services such as:<\/p>\n<ul data-start=\"1258\" data-end=\"1362\">\n<li data-start=\"1258\" data-end=\"1272\">\n<p data-start=\"1260\" data-end=\"1272\">Consulting<\/p>\n<\/li>\n<li data-start=\"1273\" data-end=\"1288\">\n<p data-start=\"1275\" data-end=\"1288\">IT services<\/p>\n<\/li>\n<li data-start=\"1289\" data-end=\"1302\">\n<p data-start=\"1291\" data-end=\"1302\">Marketing<\/p>\n<\/li>\n<li data-start=\"1303\" data-end=\"1322\">\n<p data-start=\"1305\" data-end=\"1322\">Management fees<\/p>\n<\/li>\n<li data-start=\"1323\" data-end=\"1341\">\n<p data-start=\"1325\" data-end=\"1341\">Legal services<\/p>\n<\/li>\n<li data-start=\"1342\" data-end=\"1362\">\n<p data-start=\"1344\" data-end=\"1362\">Digital services<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1364\" data-end=\"1454\">In this scenario, the foreign company is generally not required to register for Swiss VAT.<\/p>\n<h3 data-start=\"1456\" data-end=\"1487\">Recommended Invoice Wording<\/h3>\n<p data-start=\"1489\" data-end=\"1575\">\u201cVAT due by the recipient under the reverse charge mechanism \u2013 Art. 45 Swiss VAT Act.\u201d<\/p>\n<hr data-start=\"1577\" data-end=\"1580\" \/>\n<h2 data-start=\"1582\" data-end=\"1633\">2. B2C Services (Private Clients in Switzerland)<\/h2>\n<p data-start=\"1635\" data-end=\"1699\">The situation differs when services are provided to individuals.<\/p>\n<p data-start=\"1701\" data-end=\"1791\">Depending on the nature of the service, the place of supply may be considered Switzerland.<\/p>\n<h3 data-start=\"1793\" data-end=\"1823\">VAT Registration Threshold<\/h3>\n<p data-start=\"1825\" data-end=\"1874\">A foreign company must register for Swiss VAT if:<\/p>\n<ul data-start=\"1876\" data-end=\"1987\">\n<li data-start=\"1876\" data-end=\"1939\">\n<p data-start=\"1878\" data-end=\"1939\">Its worldwide taxable turnover exceeds CHF 100,000 per year<\/p>\n<\/li>\n<li data-start=\"1940\" data-end=\"1987\">\n<p data-start=\"1942\" data-end=\"1987\">It provides taxable supplies in Switzerland<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1989\" data-end=\"2068\">Important: the threshold is based on global turnover, not Swiss turnover alone.<\/p>\n<h3 data-start=\"2070\" data-end=\"2104\">Obligations After Registration<\/h3>\n<ul data-start=\"2106\" data-end=\"2269\">\n<li data-start=\"2106\" data-end=\"2135\">\n<p data-start=\"2108\" data-end=\"2135\">Obtain a Swiss VAT number<\/p>\n<\/li>\n<li data-start=\"2136\" data-end=\"2177\">\n<p data-start=\"2138\" data-end=\"2177\"><a href=\"https:\/\/my-swiss-company.com\/en\/our-services\/tax-representative-for-vat-in-switzerland\/\">Appoint a Swiss fiscal representative<\/a><\/p>\n<\/li>\n<li data-start=\"2178\" data-end=\"2206\">\n<p data-start=\"2180\" data-end=\"2206\">Provide a bank guarantee<\/p>\n<\/li>\n<li data-start=\"2207\" data-end=\"2236\">\n<p data-start=\"2209\" data-end=\"2236\">File periodic VAT returns<\/p>\n<\/li>\n<li data-start=\"2237\" data-end=\"2269\">\n<p data-start=\"2239\" data-end=\"2269\">Charge Swiss VAT on invoices<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"2271\" data-end=\"2274\" \/>\n<h1 data-start=\"2276\" data-end=\"2320\">II. Sale of Goods Delivered to Switzerland<\/h1>\n<h2 data-start=\"2322\" data-end=\"2343\">1. Import of Goods<\/h2>\n<p data-start=\"2345\" data-end=\"2416\">If a foreign company sells goods physically delivered into Switzerland:<\/p>\n<ul data-start=\"2418\" data-end=\"2550\">\n<li data-start=\"2418\" data-end=\"2450\">\n<p data-start=\"2420\" data-end=\"2450\">Import VAT is due at customs<\/p>\n<\/li>\n<li data-start=\"2451\" data-end=\"2550\">\n<p data-start=\"2453\" data-end=\"2550\">If the foreign company acts as importer of record, Swiss VAT registration is generally required<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2552\" data-end=\"2565\">This entails:<\/p>\n<ul data-start=\"2567\" data-end=\"2669\">\n<li data-start=\"2567\" data-end=\"2587\">\n<p data-start=\"2569\" data-end=\"2587\">Swiss VAT number<\/p>\n<\/li>\n<li data-start=\"2588\" data-end=\"2619\">\n<p data-start=\"2590\" data-end=\"2619\">Swiss fiscal representative<\/p>\n<\/li>\n<li data-start=\"2620\" data-end=\"2638\">\n<p data-start=\"2622\" data-end=\"2638\">Bank guarantee<\/p>\n<\/li>\n<li data-start=\"2639\" data-end=\"2669\">\n<p data-start=\"2641\" data-end=\"2669\">VAT compliance obligations<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2671\" data-end=\"2705\">2. Domestic Supply After Import<\/h2>\n<p data-start=\"2707\" data-end=\"2835\">If the foreign company imports goods in its own name and resells them within Switzerland, it performs a domestic taxable supply.<\/p>\n<p data-start=\"2837\" data-end=\"2899\">Swiss VAT must then be charged (currently 8.1% standard rate).<\/p>\n<hr data-start=\"2901\" data-end=\"2904\" \/>\n<h1 data-start=\"2906\" data-end=\"2941\">III. Permanent Establishment Risk<\/h1>\n<p data-start=\"2943\" data-end=\"3035\">Beyond VAT, a foreign company may create a permanent establishment in Switzerland if it has:<\/p>\n<ul data-start=\"3037\" data-end=\"3198\">\n<li data-start=\"3037\" data-end=\"3059\">\n<p data-start=\"3039\" data-end=\"3059\">A permanent office<\/p>\n<\/li>\n<li data-start=\"3060\" data-end=\"3106\">\n<p data-start=\"3062\" data-end=\"3106\">An employee with decision-making authority<\/p>\n<\/li>\n<li data-start=\"3107\" data-end=\"3158\">\n<p data-start=\"3109\" data-end=\"3158\">Effective management exercised from Switzerland<\/p>\n<\/li>\n<li data-start=\"3159\" data-end=\"3198\">\n<p data-start=\"3161\" data-end=\"3198\">A stable operational infrastructure<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3200\" data-end=\"3215\">Consequences<\/h2>\n<ul data-start=\"3217\" data-end=\"3386\">\n<li data-start=\"3217\" data-end=\"3266\">\n<p data-start=\"3219\" data-end=\"3266\">Corporate income tax liability in Switzerland<\/p>\n<\/li>\n<li data-start=\"3267\" data-end=\"3299\">\n<p data-start=\"3269\" data-end=\"3299\">Local accounting obligations<\/p>\n<\/li>\n<li data-start=\"3300\" data-end=\"3354\">\n<p data-start=\"3302\" data-end=\"3354\">Possible registration with the Commercial Register<\/p>\n<\/li>\n<li data-start=\"3355\" data-end=\"3386\">\n<p data-start=\"3357\" data-end=\"3386\">Social security obligations<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3388\" data-end=\"3458\">Each case must be analyzed in light of applicable double tax treaties.<\/p>\n<hr data-start=\"3460\" data-end=\"3463\" \/>\n<h1 data-start=\"3465\" data-end=\"3521\">IV. Mandatory Invoice Requirements Under Swiss VAT Law<\/h1>\n<p data-start=\"3523\" data-end=\"3570\">A compliant invoice must include the following:<\/p>\n<h2 data-start=\"3572\" data-end=\"3607\">1. Identification of the Parties<\/h2>\n<ul data-start=\"3609\" data-end=\"3725\">\n<li data-start=\"3609\" data-end=\"3650\">\n<p data-start=\"3611\" data-end=\"3650\">Full name and address of the supplier<\/p>\n<\/li>\n<li data-start=\"3651\" data-end=\"3690\">\n<p data-start=\"3653\" data-end=\"3690\">Full name and address of the client<\/p>\n<\/li>\n<li data-start=\"3691\" data-end=\"3725\">\n<p data-start=\"3693\" data-end=\"3725\"><a href=\"https:\/\/www.estv.admin.ch\/en\/register-for-vat\" target=\"_blank\" rel=\"noopener\">Swiss VAT number<\/a> (if registered)<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3727\" data-end=\"3752\">2. Transaction Details<\/h2>\n<ul data-start=\"3754\" data-end=\"3870\">\n<li data-start=\"3754\" data-end=\"3782\">\n<p data-start=\"3756\" data-end=\"3782\">Date or period of supply<\/p>\n<\/li>\n<li data-start=\"3783\" data-end=\"3808\">\n<p data-start=\"3785\" data-end=\"3808\">Invoice issuance date<\/p>\n<\/li>\n<li data-start=\"3809\" data-end=\"3851\">\n<p data-start=\"3811\" data-end=\"3851\">Clear description of goods or services<\/p>\n<\/li>\n<li data-start=\"3852\" data-end=\"3870\">\n<p data-start=\"3854\" data-end=\"3870\">Amount charged<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3872\" data-end=\"3893\">3. VAT Information<\/h2>\n<p data-start=\"3895\" data-end=\"3924\">If registered in Switzerland:<\/p>\n<ul data-start=\"3926\" data-end=\"4049\">\n<li data-start=\"3926\" data-end=\"3962\">\n<p data-start=\"3928\" data-end=\"3962\">Applicable VAT rate (e.g., 8.1%)<\/p>\n<\/li>\n<li data-start=\"3963\" data-end=\"3994\">\n<p data-start=\"3965\" data-end=\"3994\">VAT amount shown separately<\/p>\n<\/li>\n<li data-start=\"3995\" data-end=\"4049\">\n<p data-start=\"3997\" data-end=\"4049\">Swiss VAT number in the format CHE-xxx.xxx.xxx VAT<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4051\" data-end=\"4077\">If reverse charge applies:<\/p>\n<ul data-start=\"4079\" data-end=\"4131\">\n<li data-start=\"4079\" data-end=\"4131\">\n<p data-start=\"4081\" data-end=\"4131\">Clear statement that VAT is due by the recipient<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"4133\" data-end=\"4147\">4. Currency<\/h2>\n<p data-start=\"4149\" data-end=\"4231\">Invoices may be issued in foreign currency, but Swiss VAT must be declared in CHF.<\/p>\n<hr data-start=\"4233\" data-end=\"4236\" \/>\n<h1 data-start=\"4238\" data-end=\"4258\">V. Common Mistakes<\/h1>\n<ul data-start=\"4260\" data-end=\"4485\">\n<li data-start=\"4260\" data-end=\"4306\">\n<p data-start=\"4262\" data-end=\"4306\">Charging foreign VAT to a Swiss B2B client<\/p>\n<\/li>\n<li data-start=\"4307\" data-end=\"4352\">\n<p data-start=\"4309\" data-end=\"4352\">Ignoring the CHF 100,000 global threshold<\/p>\n<\/li>\n<li data-start=\"4353\" data-end=\"4402\">\n<p data-start=\"4355\" data-end=\"4402\">Failing to appoint a Swiss VAT representative<\/p>\n<\/li>\n<li data-start=\"4403\" data-end=\"4445\">\n<p data-start=\"4405\" data-end=\"4445\">Confusing import VAT with domestic VAT<\/p>\n<\/li>\n<li data-start=\"4446\" data-end=\"4485\">\n<p data-start=\"4448\" data-end=\"4485\">Omitting mandatory invoice elements<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4487\" data-end=\"4514\">These errors may result in:<\/p>\n<ul data-start=\"4516\" data-end=\"4647\">\n<li data-start=\"4516\" data-end=\"4537\">\n<p data-start=\"4518\" data-end=\"4537\">VAT reassessments<\/p>\n<\/li>\n<li data-start=\"4538\" data-end=\"4563\">\n<p data-start=\"4540\" data-end=\"4563\">Late payment interest<\/p>\n<\/li>\n<li data-start=\"4564\" data-end=\"4592\">\n<p data-start=\"4566\" data-end=\"4592\">Administrative penalties<\/p>\n<\/li>\n<li data-start=\"4593\" data-end=\"4647\">\n<p data-start=\"4595\" data-end=\"4647\">Denial of input VAT deduction for the Swiss client<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"4649\" data-end=\"4652\" \/>\n<h1 data-start=\"4654\" data-end=\"4659\"><\/h1>\n<h1 data-start=\"4654\" data-end=\"4659\">FAQ<\/h1>\n<h2 data-start=\"4661\" data-end=\"4717\">Can a foreign company freely invoice a Swiss company?<\/h2>\n<p data-start=\"4719\" data-end=\"4825\">Yes. In B2B services, reverse charge usually applies, and no Swiss VAT is charged by the foreign supplier.<\/p>\n<h2 data-start=\"4827\" data-end=\"4890\">Does the CHF 100,000 threshold apply only to Swiss turnover?<\/h2>\n<p data-start=\"4892\" data-end=\"4937\">No. It applies to worldwide taxable turnover.<\/p>\n<h2 data-start=\"4939\" data-end=\"4985\">Is a Swiss fiscal representative mandatory?<\/h2>\n<p data-start=\"4987\" data-end=\"5044\">Yes, once a foreign company becomes subject to Swiss VAT.<\/p>\n<h2 data-start=\"5046\" data-end=\"5086\">Can invoices be issued in EUR or USD?<\/h2>\n<p data-start=\"5088\" data-end=\"5130\">Yes. However, VAT must be reported in CHF.<\/p>\n<h2 data-start=\"5132\" data-end=\"5222\">Does having one employee in Switzerland automatically create a permanent establishment?<\/h2>\n<p data-start=\"5224\" data-end=\"5335\">Not automatically, but it significantly increases the risk depending on the employee\u2019s authority and functions.<\/p>\n<hr data-start=\"5337\" data-end=\"5340\" \/>\n<h1 data-start=\"5342\" data-end=\"5354\">Conclusion<\/h1>\n<p data-start=\"5356\" data-end=\"5455\">Invoicing in Switzerland by a foreign company is legally feasible but requires careful structuring.<\/p>\n<p data-start=\"5457\" data-end=\"5493\">A prior assessment should determine:<\/p>\n<ul data-start=\"5495\" data-end=\"5648\">\n<li data-start=\"5495\" data-end=\"5541\">\n<p data-start=\"5497\" data-end=\"5541\">Whether Swiss VAT registration is required<\/p>\n<\/li>\n<li data-start=\"5542\" data-end=\"5589\">\n<p data-start=\"5544\" data-end=\"5589\">Whether permanent establishment risk exists<\/p>\n<\/li>\n<li data-start=\"5590\" data-end=\"5648\">\n<p data-start=\"5592\" data-end=\"5648\">Whether invoices comply with Swiss formal requirements<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"5650\" data-end=\"5736\">A proper setup from the outset prevents significant tax exposure and compliance risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Invoicing in Switzerland by a foreign company is legally feasible but requires careful structuring.<\/p>\n<p>A prior assessment should determine:<br \/>\nWhether Swiss VAT registration is required<br \/>\nWhether permanent establishment risk exists<br \/>\nWhether invoices comply with Swiss formal requirements<br \/>\nA proper setup from the outset prevents significant tax exposure and compliance risks.<\/p>\n","protected":false},"author":3,"featured_media":10642,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[28,36],"tags":[51],"class_list":["post-10648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-administration","category-corporate-taxation","tag-en"],"_links":{"self":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/10648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/comments?post=10648"}],"version-history":[{"count":2,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/10648\/revisions"}],"predecessor-version":[{"id":10650,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/10648\/revisions\/10650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media\/10642"}],"wp:attachment":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media?parent=10648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/categories?post=10648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/tags?post=10648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}