Selling to Switzerland from Italy: customs and VAT

Switzerland is a wealthy market close by, but it is not part of the European Union: selling there from Italy means crossing a real customs border. Anyone who treats Switzerland like any other EU country soon ends up with goods stuck at the border, VAT mishandled and unhappy customers. Here is how customs and VAT work, and what changes compared with an intra-EU sale.

The starting rule: Switzerland is outside the EU

There is no intra-EU supply to Switzerland: there is an export. This involves two distinct customs steps:

• Export from Italy: the goods leave EU territory under a customs export declaration.
• Import into Switzerland: the goods enter Switzerland and incur Swiss import VAT (standard rate 8.1%) plus any duties.

Who pays what, and who acts as importer, depends on the delivery terms agreed.

Italian VAT: a zero-rated export

For the Italian seller, the sale of goods shipped to Switzerland is a zero-rated export (non-taxable supply) for VAT purposes. You do not apply Italian VAT on the invoice, but you must be able to prove that the goods left EU territory: the proof is the customs export documentation (the confirmed “exit” message).

Without this proof, the transaction risks being treated as a domestic sale and the tax authority can reclaim the VAT. The practical rule is ironclad: every export invoice must be matched by the relevant customs proof, filed in an orderly way.

Swiss import VAT: who pays it

On entry into Switzerland the goods incur import VAT, calculated on the customs value. The decisive point is who the importer is:

• If the Swiss customer imports (delivery terms such as EXW/FCA, with duties and VAT at their expense), the Italian seller simply exports and invoices as a zero-rated supply.
• If you, the seller, import (duty-paid delivery terms, with VAT and duties at your expense), you become a taxable person in Switzerland and the handling gets more complicated: you may have to register for Swiss VAT.

Defining the right incoterms in the contract is not a detail: they decide who bears the costs, the risks and the customs obligations.

When you have to register for VAT in Switzerland

Swiss VAT registration is triggered when you exceed the threshold of CHF 100,000 in relevant worldwide turnover. Two typical situations for an Italian company:

• B2B sales with a Swiss importer: these generally do not require registration, because the supply effectively takes place across the border and the customer settles the import VAT.
• Sales where the seller imports and resells in Switzerland, or significant distance sales: these can trigger the registration obligation, often with the appointment of a tax representative in Switzerland.

The case of online sales (e-commerce)

E-commerce has a specific rule: mail-order/online sellers who, through small consignments (shipments with import VAT below CHF 5, i.e. low-value goods), achieve at least CHF 100,000 in annual turnover from such supplies in Switzerland become subject to Swiss VAT and must register, charging the tax like a domestic supplier. It is the mechanism designed to prevent small parcels from effectively arriving VAT-free. Anyone selling online in Switzerland must monitor this threshold carefully.

Services, not just goods

If instead of goods you sell services to Swiss customers, the logic changes: what matters is the place of supply. For B2B services, they are generally deemed supplied where the recipient is established, i.e. in Switzerland, with the tax borne by the customer through the reverse charge. There are, however, exceptions (real estate, services physically performed at a location) to be checked case by case.

The mistakes that cost you

• Treating Switzerland as an EU country: there is no intra-EU supply, you need customs.
• Invoicing zero-rated without customs proof that the goods left.
• Not defining the incoterms, with Swiss VAT and duties unexpectedly falling on the seller.
• Ignoring the Swiss thresholds (CHF 100,000, the e-commerce rule on small consignments).
• A disorganised archive: in an audit, missing proof weighs more than the substantive error.

How to set it up properly

Selling to Switzerland is fully worthwhile if the documentary structure is correct from the outset: clear incoterms, the right invoice templates, a workflow for filing customs proof, monitoring of the VAT thresholds and, where needed, registration or tax representation in Switzerland.

At SIH ONE we analyse your flows to Switzerland, define who imports and how, set up the invoicing and the filing of proof, and check whether and when the Swiss VAT obligation is triggered — with any tax representation handled by us.

Do you sell, or want to sell, to Switzerland from Italy? Let’s set up customs and VAT the right way: the AI assistant answers straight away, a professional gets back to you within a day.