Why should a company use a tax representative in Switzerland?

Why should a company use a tax representative in Switzerland?

Companies have always been regulated by laws that must be respected. And each company must have a good legal structure if it intends to make the most of its activity. Using the services of a tax representative in Switzerland can help you make strategic decisions in Switzerland, but also around the world.

Do you really need a tax representative in a company?
Above all, it is important to know that third-party companies located in Switzerland must use tax representation in Switzerland , even if they do business in the European Union. A tax representative will then have to manage each administrative and tax formality of his client. It should also be emphasized that the European Union requires companies to follow this rule to ensure good VAT management and the quality of transactions outside Switzerland.

This professional is therefore intended to ensure that the tax procedures of a third party company are consistent and to verify the billing, entry and exit of products. He also handles all VAT returns.
Third-party companies may also use a tax agent who will handle payments, taxes and declaratory formalities. This professional does not have exactly the same job as a tax representative and only acts under the responsibility of a third company that is the only person liable for taxes.

It should be noted that some companies that are not members of the European Union are not obliged to use a tax representative. This means that they are already subject to VAT in France, which means that they do not need the intervention of a representative in their efforts.

A third company must therefore work with a tax representative or a tax representative, unless it is registered with the French tax authorities, in which case it may not appeal to these professionals.

The missions of the tax representative in Switzerland
As mentioned above, if you have a company located in a country that is not a member of the EU, you must contact a tax representative. It is this professional who will take care of all your VAT returns in Switzerland , because they are regulated. He will take care of the transactions relating to your VAT, this is the way that companies that market products or services around the world comply with the laws related to tax returns in Switzerland.

It should be noted that foreign or European companies that achieve at least a turnover of CHF 100,000 and offer products or services subject to VAT in Switzerland are obliged to register with the tax authorities in Switzerland . The tax representative therefore has the task of handling the communication, correspondence and requests for information that come from Swiss customs and tax authorities. He is the most competent professional to discuss with the tax authorities during a VAT audit in Switzerland.

Why should a company use a tax representative in Switzerland?

Here are the services of a tax representative:
  1. He checks the periodic documents
  2. He takes care of the VAT declaration of a company
  3. It checks that the taxable turnover in Switzerland and the previous tax match
  4. He deals with administrative procedures with customs if there are imports
  5. He is responsible for recovering VAT in Switzerland
  6. He manages the correspondence related to VAT
  7. Other missions of a tax representative
  8. In addition to ensuring the smooth running of your business, the tax representative will advise you best and will do everything possible to optimize the tax of your company. It will be easier for you to choose the best strategy for your activities.

Administrative company, trading company, foundation or holding company, it will give you the best advice adapted to your company. It can also help you negotiate the obtaining of tax status . All the advice he will give you will concern in some way the recovery of taxes in Switzerland or abroad, VAT returns or the annual tax return depending on the situation of your company.

How to appoint a tax representative?
Above all, it should be noted that a company is free to look for a tax representative to meet its needs. But tax representatives are generally subject to Swiss VAT, which implies that the tax authorities know them all. They must have good morals, live in the country and must have a stable establishment.

For designation procedures, your company must choose a professional listed to file claims . The designation must be made in writing by a legal representative engaged in your company, here are the mandatory information that must be in the designation document of the tax representative:

  • The names and addresses of the tax representative and the company that contacted him
  • The commitment of the tax representative on his ability to fulfill his obligations and all formalities relating to VAT and taxation
  • A designation agreement from the tax representative
  • The start date of the tax representative's service

Once this document is drawn up, the tax representative must send it to the tax department of the companies with which he / she corresponds. The role of this service is to give accreditation regarding the collaboration of the Swiss company and the tax representative. The latter will receive a notification of this accreditation.

In conclusion, the tax representative is a professional who works for taxable companies located outside the European Union. It guarantees all the formalities relating to VAT registration at EU level. It is also responsible for carrying out the tasks that fall to the client company, which will then avoid all the problems related to non-compliance with Swiss tax legislation. If your company is in Switzerland, the intervention of this professional is essential for your company.


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