Switzerland and Liechtenstein VAT
What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It generally applies to all goods and services that are bought and sold for use or consumption in Switzerland and Liechtenstein. It is a consumption tax because it is borne ultimately by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Why am I being charged VAT?
Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning Electronically Supplied Services (ESS) in Switzerland. As such, Zoom is required to collect Swiss VAT on all supplies made to customers in Switzerland.
Further, there is a legal agreement between Switzerland and the Principality of Liechtenstein which states that the Principality of Liechtenstein incorporates the substantive provisions of the Swiss VAT Act into its State Law (agreement between the Swiss Confederation and the Principality of Liechtenstein on the contract regarding VAT in the Principality of Liechtenstein, completed 12 July 2012, entered into force 17 August 2012). As such, due to Zoom’s registration for VAT in Switzerland, Zoom is also required to collect and remit VAT on all supplies made to customers in Liechtenstein through Zoom’s Swiss VAT return.
What is a VAT number?
A VAT number is a unique 9-digit number (which starts with the prefix “CHE” and ends with a suffix MWST (German) or TVA (French) or IVA (Italian)) activated by the Swiss Tax Authorities that identifies a person/entity as registrant for VAT purposes in Switzerland. There is a separate VAT number format for business customers in Liechtenstein. A Liechtenstein VAT number is a unique 5-digit number.
Where you have provided your VAT number this will show on invoices issued to you by Zoom.
How do I enter my VAT number?
To enter your Swiss VAT number, please follow these steps:
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Under Billing Contact, choose to edit the VAT Number (which appears after the Billing Contact Address field).
- Enter your Swiss VAT number and click Save.
Does Zoom have a VAT number?
Yes. Zoom is registered for VAT in Switzerland. Zoom’s Swiss VAT number will be shown on the invoice it issues to you.
How is Zoom determining which customers Swiss VAT applies to?
Zoom will apply VAT if the location of the “Sold To” contact address entered by the customer is in Switzerland or Liechtenstein. This information is subject to cross-referencing against other data to verify that the ‘Sold to’ country is accurate.
It is your responsibility as a customer to ensure that your sold to address is accurate.
Will VAT apply if a Swiss company purchases Zoom for use in a location outside of Switzerland?
If the “Sold To” address is in a location outside of Switzerland, even if the billing address is in Switzerland or Liechtenstein, Swiss VAT will not be charged on the basis that the Zoom product will be for “use” exclusively outside of Switzerland/Liechtenstein. However, the supply may be subject to VAT based on the rules applicable in the country of the “Sold To” address
Is there a minimum threshold purchase amount before VAT is applied?
No, all supplies of ESS to customers in Switzerland and Liechtenstein are subject to Swiss VAT.
Does Zoom provide VAT exempt or non-VATable services?
No, all services currently provided by Zoom to customers in Switzerland and Liechtenstein are subject to Swiss VAT.
Are there any special exemptions applicable for charities under which VAT may not be charged?
No, there are no exemptions from VAT available under Swiss VAT rules for the services Zoom supplies to charities in Switzerland and Liechtenstein.
Are there any special exemptions applicable for specified international organizations under which VAT may not be charged?
Yes, specified international organizations may be exempt from the payment of VAT on services received in an official capacity (article 107, par. 1, let.a, of the federal Law on the Value Added Tax and Articles 143 to 150 of the federal Ordinance of VAT).
However, Zoom can only provide exemption at source on receipt of Form “A/OI”. The required Form and more details on the applicable exemptions may be found at the Swiss Tax Authority website.
Will VAT apply even if a Swiss or Liechtenstein company provides a valid VAT number to Zoom?
Yes, VAT applies to all the supplies that Zoom makes to customers in Switzerland and Liechtenstein.
Are there any VAT obligations for me as a customer?
No, the customer in principle has no VAT obligations. If you are registered for VAT in Switzerland or Liechtenstein and you want to claim an input tax credit for the VAT paid to Zoom, as a minimum, you should ensure to keep a copy of Zoom’s invoice for your records.
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.
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