The development of a Swiss business requires a number of regulations to be followed, as well as a number of registrations and taxation fulfillments. The business also must be registered for VAT.
The Swiss VAT rate is the lowest in the Euro continent at just 8% and the country also allows for reduced VAT on some items like food, medical supplies and books, which feature a VAT of 2.5%. Hospitality VAT rates for accommodation feature a VAT of 3.8% and some services such as health, education and social services is exempt from the VAT.
An additional thing to note is that Switzerland is not part of the EU, so it is able to change its VAT to whatever suits its current economic climate. This also means that all companies are unequivocally required to charge and collect all taxes required and send them to the Swiss taxation department.
Rules regarding VAT apply for foreign business in Switzerland, which are:
- Only approved currency rates are allowed
- All corrections must be processed
- Invoices sent to customers must be detailed and correct
- E-Invoices must feature signatures and a recipient agreement
- All documents regarding receipts, sales and VAT must be stored for 10 years