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Located in the heart of Europe, Switzerland is characterized by a high-spending clientele and strong growth in online retail – ideal conditions for international retailers. But what tax and customs frameworks require a successful market presence in Switzerland? 

When do foreign retailers have to pay VAT in Switzerland? Foreign retailers must register for VAT in Switzerland as soon as their worldwide annual turnover exceeds CHF 100,000 and they provide taxable services to customers in Switzerland. From this point on, they are considered taxable and must remit VAT to the Federal Tax Administration (FTA).

In addition, special VAT rates and complex customs procedures apply in Switzerland, which retailers must observe. Particularly when selling via leading marketplaces such as Galaxus, Manor, or Amazon, various tax challenges arise.

Anyone wishing to establish themselves in this market should therefore be familiar with the local requirements and implement them in a timely manner. In this article, we provide you with a clear overview of the most important tax obligations as well as practical recommendations for action to master these challenges efficiently.

Tax Liability When Selling in Switzerland – When Does It Become Relevant?

The central question for foreign companies is: From when does a tax liability arise in Switzerland? The answer surprises many retailers, as it differs from the regulations within the EU. In Switzerland, a worldwide turnover threshold of CHF 100,000 applies to foreign companies. As soon as your global annual turnover exceeds this threshold and you supply customers in Switzerland, the obligation to register for VAT with the Federal Tax Administration (FTA) arises.

The place of supply is also crucial. For goods deliveries, the place where the goods are located at the time of delivery or to which they are delivered generally applies. So, if you supply Swiss customers, the place of supply is Switzerland. You can find more details on international sales strategies in our article on Cross-Border E-Commerce Strategies for Switzerland.

Registration with the Federal Tax Administration (FTA) is done online and can also be carried out by a tax representative in Switzerland. For registration, among other things, information about the company, the amount of turnover, and a commercial register extract are required. After successful registration, retailers receive a Swiss VAT number. The entire process usually takes one to three weeks. The subsequent tax settlement then takes place quarterly or – for smaller turnovers – annually via the FTA's online portal (“ESTV SuisseTax”).

VAT & Customs – What Do Retailers Need to Pay Attention To?

Different Value Added Tax (VAT) rates apply in Switzerland than in the EU. The following VAT rates are relevant for your pricing and correct handling of tax liability:

When shipping to Switzerland, proper customs clearance is crucial. For this, retailers usually need a commercial invoice with correct information on the description of goods, customs tariff number (HS code), value of goods, and country of origin. In addition, depending on the shipment value and recipient, an export declaration in the electronic customs system (ATLAS) is required. The correct declaration of the customs tariff number not only affects the amount of customs duties but also the import eligibility of certain products. An experienced sales partner for Switzerland can provide support here to avoid delays or additional charges.

In addition to VAT, customs duties are levied on the import of goods into Switzerland, which depend on the weight and type of goods. Shipping service providers also charge customs clearance fees (usually CHF 20–50). It is important that you communicate these additional costs transparently – Swiss customers are particularly sensitive to surprising additional fees.

The choice of so-called Incoterms also has an impact on your customer relationship and tax liability:

• DDP (Delivered Duty Paid): You as the retailer bear all costs, including customs duties and taxes. Customer-friendly, but requires VAT registration in Switzerland.

• DAP (Delivered At Place): The customer bears taxes and customs duties. Simpler for retailers, but often customer-unfriendly.

• EXW (Ex Works): The customer bears all transport costs and risks from the factory. Rather unsuitable for private customers.

Tax Specifics When Selling via Swiss Marketplaces

When selling via Swiss marketplaces, there are different regulations regarding tax liabilities and customs clearance. Here is a brief overview:

Generally: If you sell directly and independently to Switzerland, you assume all tax and customs obligations yourself. Alternatively, collaboration with an experienced sales partner like SURS is an option, who will take over these obligations for you. You can find out more in our guide to selling on Swiss marketplaces.

Advantages of a Swiss Sales Partner for Foreign Retailers

A Swiss sales partner like SURS offers you decisive advantages over independent market cultivation. For example, your own registration with the FTA is no longer necessary, as your sales partner acts as the importer and takes over all tax obligations for you. This significantly reduces the risk of tax errors and costly back payments.

You also benefit from significantly simpler customs and import processing. Your sales partner handles all customs formalities professionally, thereby avoiding long delivery times and high processing fees. At the same time, your competitiveness improves significantly: customers appreciate transparent prices without hidden customs fees.

The most important advantages summarized:

• No need for your own registration with the Federal Tax Administration (FTA)

• Complete assumption of VAT obligations by the sales partner

• Professional and fast customs and import processing

• Better customer loyalty through transparent and clear pricing (no hidden customs fees)

• Higher competitiveness on Swiss marketplaces and in direct sales

• Reduced compliance risk and administrative relief

You can find more information on this in our article on the advantages of sales partnerships in Switzerland.

Tax Optimization Opportunities for Retailers

For regular sales to Switzerland, it is worth considering tax optimizations. In particular, the choice between DDP and DAP deliveries has a major impact on customer satisfaction. DDP deliveries are administratively more complex but significantly increase the conversion rate.

For retailers with a monthly order volume of around 50 shipments or more, using a local fulfillment center in Switzerland is recommended. This reduces customs clearance costs per item, speeds up delivery times, and significantly simplifies returns.

Establishing your own branch in Switzerland is only economically viable at significantly higher turnovers (approx. CHF 1 million per year), as it is associated with high fixed costs. Alternatively, collaboration with a professional sales partner like SURS is usually the better option to benefit from the advantages of a local presence without simultaneously incurring the disadvantages and high costs of your own branch.

Common Mistakes & Tax Pitfalls When Selling in Switzerland

When selling in Switzerland, the same mistakes often occur, which can lead to unnecessary costs and legal problems.

Common mistakes at a glance:

• Late or missing VAT registration despite exceeding the global turnover threshold

• Unclear responsibilities for customs and VAT remittance

• Incorrect choice of Incoterms with unexpected additional costs for customers

• Unclear or incorrect communication of customs and additional costs

• Incorrect pricing due to wrong VAT rates

• Early collaboration with an experienced partner like SURS helps to reliably avoid these mistakes.

Conclusion: With the Right Partner to Sustainable Success

The Swiss market offers great potential for foreign retailers: high-spending customers, a high affinity for online shopping, and stable economic conditions. At the same time, tax regulations, complex customs processes, and market-specific peculiarities present many companies with challenges. Anyone wishing to successfully gain a foothold here must familiarize themselves with the legal framework, pricing, and logistical requirements at an early stage.

It therefore makes sense to rely on experienced partners who know the Swiss market inside out. SURS as a reliable sales partner takes over all tax and logistical requirements – from VAT registration and customs clearance to smooth delivery to your customers. This not only reduces legal and administrative risks but also strengthens your competitive position.

This allows you to fully concentrate on your core business – while SURS supports you on your way to a successful market presence in Switzerland.

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Alte Buchserstrasse 10
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Switzerland

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8108 Dällikon
Switzerland

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