Work & services
Assembly services? Repairs? Material testing? Expert opinions? Architectural services?
Let us support you in planning work services and importing materials!
Work and services: IN BRIEF
A contract for work and services (delivery including assembly, assembly only, as well as other services) is the promise to perform a specific task or achieve a specific result as a whole.
Deliveries of work and services (delivery including assembly, also assembly only, as well as services on goods) are deemed to be a taxable delivery in connection with land, buildings or objects located in Switzerland and are deemed to be made at the place where the land, building or object is located.
The delivery of an object on which work has been carried out, even if this object has not been altered as a result but merely tested, calibrated, regulated, functionally checked or otherwise handled, is also deemed to be a delivery in Switzerland, provided that the object on which the work was carried out is located in Switzerland.
In these cases, the company performs taxable work or provides a taxable service in Switzerland, which may lead the company having to be subject to VAT in Switzerland.
At what level of sales am I liable to pay tax in Switzerland?
If a foreign company makes a delivery under a contract for work and services in Switzerland, irrespective of whether materials are supplied or not, this generally triggers mandatory tax liability from the first CHF 1 of sales in Switzerland if the company has worldwide annual sales of at least CHF 100,000.
Caution when deploying staff in Switzerland
When posting staff to Switzerland, the foreign company is obliged to comply with the working and salary conditions applicable in Switzerland (minimum remuneration, working and rest times, minimum duration of holidays, occupational health and safety regulations, protection of pregnant women, women who have recently given birth, children and young people, non-discrimination, in particular equal treatment of women and men), which are prescribed in federal laws, ordinances of the Federal Council, generally binding collective labour agreements (CLA) and normal employment contracts.
In certain sectors or occupations without mandatory minimum wages, the wages customary in the locality, occupation or sector must be complied with. Tripartite commissions carry out regular inspections at workplaces in Switzerland.
Violations can lead to high fines and administrative costs being imposed in addition to having to pay back wages.
Work and services: here are a few examples
Examples of deliveries under a contract for work and services are:
- Supplying and assembling machines or machine systems
- Supplying and installing computer programs
- Supplying and assembling prefabricated houses
- Supplying and assembling kitchens, windows or railings
- Supplying and fitting of doors
- Supplying and installing floors
- Supplying and installing ventilation systems and fans
- Supplying goods and carrying out civil engineering and sewerage work
- Supplying goods installed by a foreign company during the repair or maintenance of equipment or buildings in Switzerland.
This list is not exhaustive.
Does voluntary registration make sense?
For companies located abroad that provide work and services in Switzerland and are not subject to a compulsory tax liability, input tax refunds will be refused on application (so-called VAT refund, see VAT Refund section).
This situation is unfavourable when the foreign company provides its services to companies that are entitled to full input tax deductions in Switzerland. The VAT on additional purchases cannot be claimed as input tax and, if this cannot be offset, it reduces the margin for the Swiss company.
We would be happy to clarify for you if VAT registration in Switzerland would be worthwhile for your company.
Here’s what we can do for you
We will look after all formalities and tasks related to Swiss VAT such as:
- Registering your company with the tax authorities
- Reminding you by email that the VAT statement is due
- Preparing the VAT statement on the basis of your reported sales as well as input and import taxes
- Providing documents for the annual VAT declaration
- Providing complete sub-ledger accounting with regard to Swiss VAT, including account sheets, tax journal and income statement
- We are the first point of contact for the Swiss tax authorities.
- Your company comes across as professional, making a good impression on the tax authorities!
We can manage the electronic importation assessments for your company, such as:
- Daily downloads of the eVV (customs and import assessments) from your CSP account
- Automatic entering of import taxes into the accounting system according to the eVV
- Automatic archiving of the eVV so that they are available in the event of a VAT audit
- We send you the eVV as a PDF for checking.
- We provide your accounting department with our account sheets so that the VAT paid in Switzerland can be checked against your general ledger.
- If required, we can also set filters for checking the eVV (e.g. notification of cleared customs duties, max. values, etc.).
Phoenix
Swiss VAT Agency GmbH
Mail:
office@vat-agency.ch
Telephon:
+41 (0) 61 511 52 54
Theaterstrasse 4
4051 Basel
Switzerland
