Swiss VAT when you sell a SaaS product in Switzerland
Since 1 January 2024 the Swiss standard VAT rate has been 8.1%. The reduced rate is 2.6%, and accommodation has a special rate of 3.8%. The reduced rate also covers electronic newspapers, magazines and books without advertising character, which matters if your product is a publication rather than a tool. Registration applies once a business earns at least CHF 100,000 a year from taxable and exempt supplies in Switzerland and abroad, and a registered foreign business needs a Swiss-domiciled tax representative. Foreign businesses that supply only services subject to the acquisition tax are not liable; whether your sales fall under that depends on what you sell and to whom. The EU One Stop Shop handles supplies to customers in the EU, and Switzerland is in EFTA but outside the EU and the EEA, so OSS does not cover Swiss customers. Confirm your position with a Swiss accountant before launch, and store tax rates and customer VAT status as data rather than code.
