What is fiscal representation and for whom is it important?

Fiscal representation is especially important for foreign companies that generate revenue in Switzerland. With fiscal representation, one can reclaim VAT.

In principle, a company becomes liable for VAT in Switzerland (VAT Act Art. 10 Para. 2) when it generates more than CHF 100,000 in revenue. Below this threshold, one can be exempted from VAT. When exceeding this limit, the company must register with the Federal Tax Administration. It is important to note that a bank domiciled in Switzerland must provide a joint guarantee or make a cash deposit.

If a foreign company operates and is liable for taxes domestically, it must be represented by a representative domiciled in Switzerland according to Art. 67 Para. 1 of the VAT Act, which grants the company domicile. The representative must be a legal or natural person with a residential or business address in Switzerland.

The benefits of fiscal representation for the taxable company are that your representative takes care of the entire process. From checking tax liability, applying for relevant documents, and preparing periodic VAT statements, to reclaiming paid input taxes. This relieves the company of administrative burdens, allowing the business owner to focus on operational business.

If you have further questions, our experts will be happy to advise you on all matters related to fiscal representation. Calculate your quote online and schedule a consultation.