A foreign business is mandatorily subject to value added tax in Switzerland if it supplies goods or services on Swiss territory and its worldwide taxable turnover is CHF 100,000 or more. The relevant limit is CHF 250,000 for non-profit, voluntarily-run sporting or cultural associations or charitable institutions.
The tax liability of foreign businesses generally begins the first time a supply is provided on Swiss territory. However, in the particular case of advance payments, it begins on the date of the invoice or, if there is no invoice, on the date of collection of the consideration.
In order to fulfil their procedural obligations, foreign businesses must appoint a representative whose place of domicile or business is in Switzerland.