The Federal Council defines new VAT liability for foreign companies carrying out construction work in Switzerland. The Federal Council approved two amendments to the Value Added Tax Ordinance, which are valid as from 1 January 2015. The aim of the new rule is to reduce the competitive disadvantages for domestic companies in comparison to foreign companies who are not obliged to register for VAT purposes.

As from 1 January 2015 all companies (foreign as well as Swiss) will be obliged to register for Swiss VAT purposes in case their turnover subject to purchase tax will exceed the threshold of 100’000 Swiss franks. That means that going forward foreign companies who provided in the past construction and construction-related work will have to register. For details please click here