Whilst Switzerland is not part of the European Union, it operates a very similar system of Value Added Tax. Locally, the consumption tax is known as Mehrwertsteuer (MWST), Taxe sur la valeur ajoutée (TVA) or Imposta sul valore aggiunto (IVA).
Switzerland introduced its current VAT system in 1995. It is operated under the guidance of the Federal Tax Administration. This provides the rules governing the Swiss VAT registration, returns, compliance and other reporting requirements for non-resident VAT traders.
As with EU member countries, foreign companies importing, buying or selling goods in Switzerland may have to VAT register as a non-resident trader.
Switzerland sets a number of situations where it requires foreign businesses to
Switzerland has adopted most the EU place of supply rules for VAT, including use of the reverse charge. This means that since the EU 2010 VAT Package, there are very few service-related situations which require a VAT registration.
You can read more about Swiss VAT on our VAT compliance, VAT registration or other related briefings.