Place-of-recipient rule
Under the place-of-recipient principle, a service is deemed supplied where the recipient has their seat or domicile; that decides whether Swiss VAT is owed.
Definition
For a Swiss provider this means: consulting for a client abroad is not taxable domestically, consulting for a domestic client is. Conversely, acquiring a foreign service triggers acquisition tax.
Exceptions apply to services tied to a location: work on real estate, hospitality, cultural and sporting events, passenger transport. There the place of activity or of the property governs.
Where to read it
What the software must be able to do
You need tax logic that evaluates the customer’s domicile rather than only setting a fixed code per item. Businesses with customers abroad additionally need the evidence, for which the address alone is not always enough.
Checked Aug 2026
More terms under VAT and customs: Acquisition tax Customs declaration Effective method Exempt supplies Flat-rate VAT method Input tax Margin taxation Non-consideration Own use Reduction of consideration Takeaway 2.6 vs. eat-in 8.1 Value added tax VAT 3.8 % accommodation VAT 8.1 / 2.6 / 3.8 % VAT liability