WHT and CIT with Swiss branch

[JohnLocke]

mraleph said:
What if VAT - tax number does not exist at receivers end in B2B transaction?
Click to expand...

That's a good question how they will deal with it in Switzerland.

I know that in other countries you have to pay VAT from the entire amount then.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[daniels27]

https://www.fedlex.admin.ch/eli/cc/2009/615/de

Art. 8 Ort der Dienstleistung​

1 Als Ort der Dienstleistung gilt unter Vorbehalt von Absatz 2 der Ort, an dem der Empfänger oder die Empfängerin der Dienstleistung den Sitz der wirtschaftlichen Tätigkeit oder eine Betriebsstätte hat, für welche die Dienstleistung erbracht wird, oder in Ermangelung eines solchen Sitzes oder einer solchen Betriebsstätte der Wohnort oder der Ort seines oder ihres üblichen Aufenthaltes.

Art. 18 Grundsatz​

1 Der Inlandsteuer unterliegen die im Inland durch steuerpflichtige Personen gegen Entgelt erbrachten Leistungen; sie sind steuerbar, soweit dieses Gesetz keine Ausnahme vorsieht.



https://www.fedlex.admin.ch/eli/cc/2009/615/en

Art. 8 Place of supply of a service​

1 The place of supply of a service is deemed, subject to paragraph 2, to be the place at which the recipient of the service has its registered office or a permanent establishment for which the service is provided, or in the absence of such a registered office or such a permanent establishment, its domicile or the place of his normal abode.

Art. 18 Principle​

1 Domestic tax shall be levied on supplies made by taxable persons on Swiss territory for consideration; they are taxable unless this Act provides otherwise.
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As far as I know, there is no need in Switzerland for the paying party to have a VAT Reg. No. See the law above.

 

[GPT]

mraleph said:
What if VAT - tax number does not exist at receivers end in B2B transaction?
Click to expand...

I am aware of other numbers being used in such cases. Think company registration numbers or LEI numbers.

Basically it is a check on whether it is correct to not charge VAT.

daniels27 said:
As far as I know, there is no need in Switzerland for the paying party to have a VAT Reg. No. See the law above.
Click to expand...

In one of my previous companies we were forced to have a VAT number (canton of Zug).

One of the things that changed at one point was the threshold amount. It got significantly lowered, I think because of EU harmonization? Shortly after we had a VAT number..

Added to that, it doesn't always have to be your home country requiring you to have a VAT number. It can also be your clients home country.

Last edited: May 8, 2024

 

[mraleph]

daniels27 said:
As far as I know, there is no need in Switzerland for the paying party to have a VAT Reg. No. See the law above.
Click to expand...

Considering the quoted and following legal dispositions

https://www.fedlex.admin.ch/eli/cc/2009/615/de#art_1
VAT in our business case will certainly not be levied as it's b2b export oriented.

GPT said:
I am aware of other numbers being used in such cases. Think company registration numbers or LEI numbers.

Basically it is a check on whether it is correct to not charge VAT.


In one of my previous companies we were forced to have a VAT number (canton of Zug).

One of the things that changed at one point was the threshold amount. It got significantly lowered, I think because of EU harmonization? Shortly after we had a VAT number..

Added to that, it doesn't always have to be your home country requiring you to have a VAT number. It can also be your clients home country.
Click to expand...

The Mwst registration is simple after the tax rulling. So, we'll not lose anything if registered for VAT.

In particular case, as @daniels27 quoted the legal framework, despite that recipients may not have VAT number, other forms of identification can be used as @GPT stated.

Thank you for quality discussion on this topic.