Swiss VAT refund for foreign companies | Recover VAT in Switzerland (Englische Version)

Foreign companies frequently incur Swiss value added tax (VAT) when doing business in Switzerland. Whether attending trade fairs or sending employees for projects in Switzerland, VAT can quickly accumulate and become a significant cost.

However, many foreign businesses are not aware that Swiss VAT may be recoverable. Through the official VAT refund procedure administered by the Swiss Federal Tax Administration, eligible companies can reclaim VAT incurred in Switzerland.

For international businesses, understanding the Swiss VAT refund procedure can unlock significant cost savings and improve overall tax efficiency.
 

Which companies are eligible to a Swiss VAT refund?

Foreign companies may qualify for a Swiss VAT refund if certain conditions are met:

1. The business must have its registered seat outside Switzerland and no permanent establishment in Switzerland. It must be registered for VAT in its home country.
2. The business must basically not carry out supplies in Switzerland which would trigger a VAT liability during the refund period.
3. The country where the company is established must grant reciprocal VAT refunds to Swiss companies. Please refer to the list: Countries VAT Refund. Interestingly, VAT refund is granted to companies from countries without a VAT system, such as the USA or Hong Kong (but not China). 
    

What administrative requirements must be met in the refund procedure?

1. The VAT refund procedure is managed by the fiscal representative. Foreign companies must appoint a fiscal representative based in Switzerland for the procedure and cannot file the claim on their own.
2. Minimal amount: To submit a claim, the recoverable VAT must amount to at least CHF 500 per calendar year.
3. Deadline: Refund applications must be submitted to the Swiss Federal Tax Administration until 30 June of the year following the refund period. This deadline cannot be extended, and applications submitted after this date are rejected.
4. Refundable VAT: Foreign companies may reclaim Swiss VAT on a wide range of business-related expenses incurred in Switzerland. Beside business travel and accommodation, VAT is refundable on trade fair and exhibition costs such as exhibition booth rental, stand construction and logistics, event management services, entertainment, etc. Specific limitations are applicable to some countries (please refer to the list, e.g. no refund of VAT on fuel to Austrian companies).
5. Documentation:
   1. A VAT certificate issued by the foreign tax authority as evidence of the VAT liability in the country of establishment must be enclosed to the VAT refund request. This certificate must attest that the claimant was registered for the period of the refund or state the date of the beginning of its VAT liability.
   2. Original invoices and import documents must no longer be submitted with the refund application. Copies are sufficient. Proofs of payment must be submitted only upon request. The procedure is still paper based.
   3. Invoice Requirements: to qualify for VAT recovery, invoices must comply with Swiss VAT invoicing rules. In particular:
      • The invoice must clearly show the Swiss VAT amount
      • The invoice and import documents must be issued to the name of the applicant company. Invoices addressed to employees or contractors, vouchers not mentioning the name of the claimant (receipts, train tickets, parking tickets, etc.) will not be accepted. 

VAT will usually be refunded within 6 months after the request has been filed. The amount can be credited to a foreign bank account. 
 

Turn Swiss VAT into a recoverable asset

For many foreign companies, Swiss VAT represents a hidden financial opportunity. Businesses travelling to Switzerland or participating in trade fairs often incur VAT that can be reclaimed through the official refund procedure.

By reviewing Swiss expenses and submitting a properly prepared application, companies can recover VAT, reduce operating costs, and improve cash flow.

If your business incurs VAT in Switzerland, it may be worthwhile to evaluate your Swiss VAT refund eligibility and ensure that valuable refund opportunities are not missed.