VAT on International Services: Cross-Border Rules Made Simple

When your client is abroad, the question is not just which rate — it is whether Swiss VAT applies at all. The answer depends on the place of supply.

Services to businesses (B2B)

For services supplied to a business, the place of supply is generally where the customer is based. A Swiss freelancer invoicing a German company often charges no Swiss VAT — instead the German client accounts for it under reverse charge.

This rule shifts the tax to the customer’s country and prevents double taxation. You invoice without Swiss VAT and the client declares the tax locally.

To apply the rule correctly you need evidence that your client is a genuine business, typically their VAT identification number. Record it on the invoice.

The same principle applies whether your client is in Germany, France, Italy or further afield. The customer’s location, not yours, decides the treatment.

• B2B services: generally taxed where the customer is.
• Swiss VAT often does not apply to foreign B2B clients.
• The foreign client self-accounts via reverse charge.

Services to consumers (B2C)

For services to private consumers, the rules differ by service type and can keep the supply taxable in Switzerland. Cross-border digital services have their own specifics.

As a general rule, B2C services are usually taxable where the supplier is established, meaning your Swiss VAT applies even to a foreign private client.

Digital and electronic services are a major exception. For those, the place of supply follows the consumer, which can trigger foreign VAT registration obligations.

When you sell software subscriptions or online courses to consumers abroad, check whether you are obliged to charge their local VAT. Thresholds and simplification schemes vary by country.

Do not guess

Document the reasoning behind each cross-border invoice, including the place-of-supply rule you applied and the client’s VAT status.

Some services, such as those connected to land or property, follow the location of the property rather than the parties. These exceptions are easy to overlook.

If you invoice a foreign business without VAT but cannot prove their status, you risk having to pay the Swiss VAT yourself later. Keep the evidence on file.

Practical steps

Before invoicing abroad, ask for the client’s VAT number and verify it where possible. A valid number is your first line of defence.

Add a reverse-charge note to the invoice so the client knows why no Swiss VAT is charged. This protects both parties in an audit.

Track your foreign revenue separately in your accounting. You will need it when completing your Swiss VAT return and for any foreign obligations.

facturio lets you mark a client as VAT-registered abroad and automatically drops Swiss VAT, with a reverse-charge note included on the invoice.