Setting up an e-commerce company in Switzerland

Selling online looks like a light activity: a website, a warehouse, a courier. In legal and tax terms, however, a Swiss e-commerce business has the same needs as any company, plus a few complications typical of distance selling. Choosing the wrong legal form or underestimating VAT are the mistakes you pay for later, when volumes grow. Here is what to get right before launching.

Which legal form to choose

There are three concrete options:

• Sole proprietorship: quick and cheap, but the owner is liable with their personal assets. Suitable only for an initial test with low volumes.
• GmbH: minimum share capital of CHF 20,000, fully paid in. Liability limited to the capital, partners registered in the commercial register. It is the most frequent choice for an e-commerce that starts in earnest.
• AG: minimum capital of CHF 100,000, of which at least CHF 50,000 paid in. Shareholders not registered in the register, a more solid image towards suppliers and investors.

For a project that moves goods, collects payments from customers and takes on product liability risks, the limited liability of a GmbH or an AG is not a luxury: it is protection of personal assets.

VAT is the real crux of e-commerce

Liability for VAT (MWST) generally kicks in above CHF 100,000 of worldwide annual turnover. Below that threshold you can remain non-liable, but voluntary registration is often worthwhile anyway to recover input tax on costs and investments. The standard rate is 8.1% as of 2024.

Watch out for a specific aspect of distance selling: businesses that sell small consignments from abroad into Switzerland for more than CHF 100,000 a year are required to register and charge Swiss VAT as domestic sellers. If your e-commerce is based in Switzerland but also ships abroad, the VAT rules of the destination countries come into play (in the EU, the thresholds and the OSS scheme). The mapping of the flows must be done beforehand, not after the fact.

Customs and cross-border shipments

Switzerland is not in the EU customs union. Every shipment that crosses the border is an import or an export, with:

• a customs declaration and import VAT;
• handling of returns coming back from abroad;
• possible duties on certain categories of goods.

Setting up customs logistics well, often relying on freight forwarders and simplified procedures, prevents hidden costs from eroding the margin on every order.

Accounting and thresholds to know

The obligation to keep accounts depends on the form and the revenue:

• above CHF 500,000 of turnover, full accounting is required (income statement, balance sheet, notes);
• below that threshold, for sole proprietorships and partnerships, simplified accounting suffices (income, expenses, assets).

Corporations keep orderly accounts from day one anyway. An e-commerce generates many small-value transactions: without a management system connected to the sales platform and to payments, reconciliation becomes unmanageable.

The obligations not to forget

• Registration in the commercial register (mandatory for GmbH and AG, and for a sole proprietorship above CHF 100,000 of revenue).
• Affiliation with AHV/IV/EO (state pension, disability and loss-of-earnings insurance) as an employer or self-employed person; if there are employees, also BVG (occupational pension), UVG (accident insurance) and ALV (unemployment insurance).
• Clear general terms of sale, mandatory consumer information, handling of warranty and withdrawal.
• Data protection for customers under Swiss law (FADP), especially if you handle payment cards and purchasing profiles.

The typical mistake: thinking only about the platform

Many founders pour everything into the site and marketing and treat the structure as a formality. Then the first VAT audit arrives, a shipment gets stuck at customs or a return is disputed, and the initial carelessness turns into a cost. A scalable e-commerce is born with the right legal form, VAT set up correctly and accounting that can handle the volumes.

How we work at SIH ONE

At SIH ONE we set up the company suited to your sales model, verify VAT liability in Switzerland and in the destination markets, set up accounting connected to your platform and take care of the social security obligations. The aim is for the structure to be ready to grow together with the orders, not to hold them back.

Are you launching or consolidating an e-commerce in Switzerland? SIH ONE accompanies you in setting up your company, with VAT and accounting set up well from the first order.