Question about VAT

[Blablos12345]

Hello OCorpTalk Members

I've searched the forum but found nothing about it.

We live in switzerland and have several online shops. Digital products (software, services, etc.). We have already exceeded the limit of 100k and have to pay 7.7% VAT for the services in Switzerland. For the digital products that we sell abroad, e.g. in the EU, we do not pay VAT because we are based in Switzerland. The question now is the following: if we set up a foreign company and run the shops for the swiss market through it, can we prevent the vat? since we then sell from abroad to switzerland, so to speak. all products and services are digital and therefore do not require customs or anything else.

I hope you can help

kind regards

 

[CyprusBusiness]

Please verify whether you sell digital services to consumers (B2C) or businesses (B2B). If it‌ is the former, despite the fact that your company is registered in Switzerland, you will‍ need to charge EU vat as the place of supply for Electronic/Digital services is where⁠ the consumer resides.

Please see guide here: VAT on digital services/MOSS: What services are covered?⁤ - Your Europe

 

[Blablos12345]

We sell only B2C

 

[JustAnotherNomad]

I'd suggest you stop breaking the law. Talk to an account to find out how‌ to fix your mistakes.
This will probably get really, really expensive for you, as you‍ will most likely have to pay all the VAT you didn't charge your EU customers⁠ from your own pocket now. Good luck.

 

[Blablos12345]

Thank you