Watch out for service import taxes when applying a VAT net tax rate method

The purchase of services from abroad can give rise to the service import tax (Bezugsteuer). The condition for this is that the foreign company is not subject to Swiss VAT and that these services cannot be collected via customs. Examples include GoogleAds, Facebook advertising or other forms of advertising from foreign providers. Other examples include licences or software subscriptions and accounting services provided abroad.In the normal VAT declaration method, the service import tax does not have an impact, since the declared service import tax is directly deducted as input tax in the same quarter. A correct declaration is nevertheless important, because it saves discussions during a VAT audit. When applying a VAT net tax rate method (Saldosteuersatz), the service import tax must be declared with 7.7% VAT and represents an actual costs.