Mail order regulations in Switzerland
What do mail order companies need to know?

With the partial revision of the Value Added Tax Act, foreign companies active in the mail order business are to be put on an equal footing with companies based in Switzerland. The previous unequal treatment results from the fact that no value-added tax is levied on imported goods for reasons of economy of collection if the tax amount is five francs or less (so-called small consignments). In addition, the delivery of goods is not subject to domestic VAT  (domestic tax) ¹ . The buyer of the goods can thus obtain small consignments from abroad without being charged VAT, whereas the same consignment is subject to domestic tax when purchased from a domestic mail-order company or retailer entered in the VAT register.

If a (domestic or foreign) mail-order company generates sales of at least 100,000 francs per year from small consignments that it transports or sends from abroad to Switzerland, apply  his deliveries ²  as domestic deliveries. As a result, he or she becomes subject to VAT in Switzerland and must be entered in the VAT register. The tax liability arises when the turnover limit of 100,000 francs is reached (see Checking the tax liability ). The turnover limit is calculated from the fees paid by the buyer to the mail order company.

From the entry in the VAT register due to the mail-order regulation, not only small consignments from the mail-order company are considered domestic deliveries, but also all other consignments for which the import tax amount is more than five francs.  As a result, in the case of a taxable mail-order company, all shipments to Germany are subject to domestic tax ³ .

¹  The Swiss national territory, the Principality of Liechtenstein and the German municipality of Büsingen are considered inland. If Switzerland is mentioned below, this is done for reasons of better readability; This means the country in terms of value added tax.

²  In addition to dispatch deliveries, transport deliveries are also relevant, but not pick-up deliveries. This means that deliveries trigger tax liability where the supplier himself or a third party on his or her behalf carries out the transport to the buyer or to a place specified by the buyer in Switzerland takes over.

³  In addition to said deliveries, all other taxable domestic services are also subject to domestic tax.

How to check VAT liability?

Anyone who achieves sales of at least 100,000 francs from small consignments in 2018 and if it can be assumed that such deliveries will also be made in the twelve months from January 1, 2019, will be subject to mandatory tax from January 1, 2019 and must register in the VAT – Get registered.

If items from abroad are only delivered to Germany after January 1, 2019, which are exempt from import tax due to the low tax amount, the place of delivery is considered to be abroad until the end of the month in which the service provider has reached the turnover limit of 100,000 francs from such deliveries (Art. 4a para. 1 VAT). From the following month, the place of delivery for all deliveries by the mail order company from abroad to Germany is deemed to be in Germany (Art. 4a para. 2 VAT). He or she must then be entered in the VAT register and import the goods in their own name.

If the turnover falls below the CHF 100,000 limit at a later date and the Federal Tax Administration (ESTV) is not reported, it is assumed that the mail-order company is voluntarily subject to VAT (Art. 4a para. 3 and 4 VAT Regulations; see procedure).

How to register as a VAT payer?

If a domestic or foreign mail-order company meets the requirements for tax liability, he or she must register independently with the FTA. The foreign mail order company must have a tax representative with a place of residence or place of business in Germany (Art. 67 para. 1 VAT). In addition, security must be provided in the form of an unlimited joint and several guarantee from a bank domiciled in Switzerland or a cash deposit. Information on this can be found under VAT registration .

What is the procedure for a mail order company entered in the VAT register?

The mail-order company entered in the VAT register owes Swiss VAT on all deliveries to buyers in Switzerland  (domestic tax) ⁴ .  Domestic tax is therefore due on both small consignments and consignments subject to import tax. In return, the taxable mail-order company can deduct the import tax from the beginning of the tax liability (they are considered importers) and also all other input taxes incurred as part of their entrepreneurial activities that entitle them to deduct input tax.

What is the procedure for voluntary tax liability in accordance with the “Declaration of subjection abroad”?

By means of a “declaration of subjection abroad”, mail-order companies can voluntarily become subject to tax before the turnover limit decisive for tax liability is reached or before the mail-order regulations come into force. This makes it easier for you to plan the changeover. In this procedure, the mail-order company (entered in the VAT register) is considered the importer and can also claim the import tax as input tax. The delivery to the domestic buyer is then considered a domestic delivery (analogous procedure to the mail order regulation, but see the next paragraph). The application of the “declaration of subjection abroad” can also make sense if the turnover achieved with small consignments is close to the turnover limit of 100  000 francs moved. The subordination maintains continuity in terms of process and tax liability. For more information see

As soon as taxpayers who are already in possession of the “declaration of subjection abroad” meet the requirements of the mail order regulation (Art. 7 para. 3 let. b VAT Act), you no longer have the option of waiving the application of the “declaration of subjection abroad” in individual cases (Art. 7 para. 3 let. a VAT Act), ie they have to apply them to all deliveries and are therefore regarded as importers of the items.

What is the procedure for companies that are already subject to VAT and also provide shipping or transport services?

If a domestic or foreign company is entered in the VAT register due to other domestic services and this company also provides transport or shipping deliveries with small consignments from abroad to Germany, these small consignments are still foreign sales (except for companies with an approved « Declaration of subordination abroad”; see the above). Deliveries from this company also only become domestic deliveries when the limit of 100,000 francs per year from such deliveries (small consignments) is reached.

⁴  If the mail-order companies entered in the VAT register provide other domestic services (services and/or deliveries with a domestic place of performance; Art.  7 and 8 MWSTG ), these services are also subject to domestic tax.

With the opening of an account in the centralized billing procedure of the Federal Office for Customs and Border Security (so-called ZAZ account), processing for the taxable mail-order company is made even easier. This method has the advantage that the import tax from the  BAZG is billed directly to the consignor and not to the customs declarant. The assessment decisions are listed daily in the bordereau of the taxes. The account holder receives the compilation with the associated investment decisions in the form of a digitally signed file. He can pick them up online. The corresponding invoice must be paid within sixty days. Information on this can be found on the BAZG website .

Can shipments be combined?  (does not apply to postal services ⁷ )

A further simplification consists in combining several shipments for various recipients on a single customs declaration. Instead of many individual customs declarations, all consignments combined in this way can be declared with one collective customs declaration. For example, if a hundred different DVDs are sent to a hundred domestic buyers at the same time, these shipments can be treated as a single shipment, which massively reduces the customs clearance effort for the mail order company and possibly also the corresponding costs. This provides more detailed information  BAZG.

⁷  The collective customs declaration cannot be used in postal traffic according to the UPU (Universal Postal Agreement).