Tax and Legal August 12, 2023 | David Merz Customs and Taxes when Shipping to Switzerland The increasing trend towards cross-border online trade provides many opportunities for businesses to access new consumer markets from around the globe. The Swiss market has become particularly attractive for online shops based in the EU. It is essential for these businesses to understand the customs and tax obligations when shipping their goods to Switzerland. In this article, we provide key insights into Switzerland's customs and tax laws, including customs clearance procedures, VAT regulations, exemptions, and issues surrounding VAT registration in Switzerland. Read more
August 12, 2023 | David Merz Taxes when Shipping to Non-EU Countries Shipping goods abroad to both European Union (EU) and non-EU countries can present both opportunities and challenges for companies in Switzerland. Understanding the tax implications, including customs duties, import taxes, and value-added tax (VAT), is crucial for smooth cross-border transactions and accurate financial planning. In this article, we will delve into the tax factors that Swiss exporters should consider when shipping to both EU and non-EU countries, as well as provide a broad overview of some other general considerations. Read more
August 12, 2023 | David Merz Customs and taxes within the EU for online shops: Navigating cross-border trade The rapid growth of e-commerce and cross-border online trade offers businesses greater opportunities to reach customers from around the world. However, as an online shop, it is essential to understand the customs and tax regulations which apply to cross-border online trade in the European Union (EU). In this article, we will explore the key customs and tax regulations for online shops in the EU, including VAT considerations and the important recent changes in regulations. Read more
August 10, 2023 | David Merz Founding a company in Switzerland: what taxes will I have to pay? Founding a company in Switzerland is an exciting and rewarding venture, but you need to understand the associated tax obligations before embarking. Switzerland is known for its favourable tax system, which offers numerous incentives to businesses. In this article, we explore the main aspects of Switzerland’s tax system and the different types of taxes applicable to businesses. We will also explain how these taxes are calculated, who they apply to, and what can be deducted from taxable income. Read more
June 24, 2023 | David Merz Input tax in Switzerland: What can be claimed? The ability to claim input tax deduction is a key feature of the VAT system. It allows businesses to recover the VAT they have paid on purchases and pass on their VAT liability to the end consumer. In this article, we explore the concept of input tax deduction in Switzerland. We explain which businesses are eligible to claim back the input tax they have incurred, and the specific requirements they must fulfil to be able to do so. Read more
June 23, 2023 | David Merz Maximizing Your Earnings: A Closer Look at VAT on Holiday Home Rentals in Switzerland Many individuals and families decide to invest in a second home or holiday home in Switzerland. If this applies to you, or if it’s something you’re considering, it’s important that you understand the associated tax implications. In this article, we explore the different taxes which apply to second homes in Switzerland, including income tax, value-added tax (VAT), capital gains tax, and real estate transfer tax. We will pay special attention to the VAT liability which arises due to renting a holiday home. Read more
February 3, 2023 | Marco Schoch Comparison of minimum capital tax rates for companies in all 26 cantons Swiss companies are subject to two types of taxes: taxes on profits and a capital tax on equity. However, some cantons have introduced a flat minimum tax to cover the costs associated with conducting tax audits for each company. This tax is often overlooked, especially in the start-up phase of newly founded companies that are not yet making a profit. In this article, we delve into the world of corporate taxes in Switzerland and in particular the minimum tax that some cantons in Switzerland levy on companies. Read more
February 2, 2023 | David Merz Maximising tax benefits: The choice between a company car and a private car In this article, we examine the tax implications of using a car for private and business purposes, covering scenarios of using a company car for private purposes and a private car for business purposes. We discuss calculating private share, social security contributions, and VAT for a company car. We also highlight the importance of recording mileage, possible cost savings, and restrictions when using a private car for business purposes. Read more
January 18, 2023 | Marco Schoch Financing self-employment in Switzerland with early withdrawals from pillar 3a and the pension fund Self-employment has become a popular option for many people in Switzerland. It offers more flexibility, independence and the opportunity to make their own financial decisions. However, becoming self-employed requires sufficient funding, and for many people, early withdrawal from the pension fund and pillar 3a can be a valuable source of funding. In this blog, we go into the legal provisions and procedures for early withdrawals from pillar 3a and the pension fund in Switzerland and explain how they can be used to finance self-employment. Read more
August 7, 2022 | Marco Schoch What to do when your tenant doesn’t pay their rent? Rent payments are firmly planned income for landlords. Therefore, as well as being frustrating, missing rent payments can cause significant financial harm. When tenants fail to pay their rent, many property owners suddenly face major challenges, such as paying mortgage interest out of their own pocket. Unfortunately, most landlords are faced with missing rent payments sooner or later. When this happens, it is vital to quickly take the right steps while acting in a legally compliant manner. In this article, we will provide a step-by-step guide on how to quickly remove tenants who are unwilling to pay their rent. Read more
