Building site · construction · assembly

Swiss VAT for the building sites and works of foreign companies

Construction, assembly, installation: works in Switzerland trigger VAT from the first taxable supply. But depending on the set-up, the obligation — and the point of contact — change.

Start my registration →
From the 1st supplyCHF 100,000 thresholdWatch the permanent establishment

A foreign company carrying out construction, assembly or installation works in Switzerland makes a supply on the territory. As soon as worldwide turnover exceeds CHF 100,000, liability and the appointment of a fiscal representative become necessary before any invoicing.

Example

An Austrian joinery company works for 3 months on a building site in Zurich, with worldwide turnover above the threshold: it is liable and must appoint a fiscal representative before invoicing.

If you do not import materials and the supply is governed by the place of the recipient, it is the Swiss customer who declares the acquisition tax: you do not need to register. Conversely, if you import materials, import tax applies on the full value.

Example

An engineering company supervising a building site without delivering or importing materials does not register: it is the Swiss customer who declares the acquisition tax.

Beyond 12 months, a building site may constitute a permanent establishment: taxation of profits, full accounting. Another area of expertise takes over — fidflow, for companies established in Switzerland. → fidflow.ch

Building site > 12 monthsCreates a permanent establishment: taxation of profits, full accounting. Falls to fidflow, not vatflow.
Short / occasional building sitePure fiscal representation (art. 67 LTVA). This is our business — vatflow.

Frequently asked questions

Does a building site in Switzerland make my foreign company liable for VAT? +

Yes, from the first taxable supply on the territory, if worldwide turnover exceeds CHF 100,000.

Must I always register? +

No: without importing materials, it is the Swiss customer who declares the acquisition tax.

What happens if my building site lasts more than 12 months? +

It may create a permanent establishment: you then fall under full accounting, beyond mere fiscal representation.

What is the difference between import tax and acquisition tax?

If you import materials, import tax is levied by customs. If you import nothing, it is acquisition tax, declared by the Swiss customer.

From when does a building site create a permanent establishment?

A building site of more than 12 months may constitute a permanent establishment within the meaning of the tax treaties.

Which rates apply to works?

The standard rate of 8.1 % applies to construction and installation works in Switzerland.

Can I deduct the VAT paid on the building site?

Yes: once liable, you deduct the VAT paid on your Swiss purchases and subcontracting (input tax).

A building site in Switzerland?

Pure representation: we handle your registration.

Start my registration →