February 21, 2024
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Perfect Sales Tax Options Set for You

Sales tax is applied under the same conditions to all member countries of the European Union (with the exception of rates which have not yet been harmonized). Its regime stems from the 6th Sales tax Directive of May 17, 1977 (amended on numerous occasions), the provisions of which are binding on the Member States.

Since 1993, border crossing is no longer the operative event for intra community trade, taxation occurs when the goods are delivered to the recipient country.

For businesses, payment is made according to the same terms as internal Sales tax. Any taxable person who carries out transactions giving rise to the right to deduct is identified by an individual number which must be communicated by the buyer to the seller. You can use the state sales tax calculator there.

The essential

Sales tax is a proportional, indirect and consumption tax. Its rate is generally 19.6%. Companies pay Sales tax to the Treasury at the end of each month.

If this is not the case, i.e. the real consumer does not correspond to the person or the company to whom the invoice is addressed, the place where the real consumer of the service is located is then decisive to qualify the service from a Sales tax point of view.

Provision of services with data carriers without market value

When no market value can be determined, when importing data media (e.g. IT domain), the value of the data medium, including the provision of services and the rights relating thereto, is subject to the Sales tax tax on acquisitions. However, care will be taken to subtract from the calculation any foreign Sales tax which may have been invoiced by the service provider, rightly or wrongly (art. 45, para. 1, letter b, Sales tax Act).

  • Imports of goods for which Sales tax has not already been levied by the Federal Customs Administration (AFD) when they are imported into Switzerland.

The following goods are also exceptionally subject to Sales tax on acquisitions: goods which are imported into Swiss territory which are not already subject to Sales tax on imports from AFD (but which are nevertheless taxable upon importation). or on Swiss territory) and which are provided by a company headquartered abroad that is not registered in the Swiss Sales tax register.

The recovery of deductible Sales tax is an important issue for most companies. If your business is spending money overseas, you may have a hidden treasure to cover ! Purchases and sales abroad: with or without Sales tax?

Understanding how Sales tax works is essential to meet the obligations that arise from it and to benefit from the refunds to which you are entitled. Whether in country or in member states of the European Union, the amount of reimbursement is the same but the terms vary. It is important to understand how to invoice customers abroad for example.