VAT - Importing Goods into Switzerland - Who Pays the VAT?

Most goods imported into Switzerland are subject to VAT at the rate of 6.5% (standard) or 2% (reduced). The tax is levied by the customs authorities and has to be paid immediately at the border, upon the entry of the goods into Switzerland, except where the importer has an "account" with the customs in which case payment must be made within 60 days.

Unless the importer is registered for VAT purposes in Switzerland, he is not allowed to invoice VAT to his Swiss customers and he is not able to recover the VAT paid at the border since only registered taxpayers may deduct these amounts as input tax paid.

A foreign individual or company may avoid this cost if the customer agrees that the customs formalities are in his name and for his account. This means that the importer will act as having received a request to import the goods of the Swiss customer. At the border, he therefore pays the VAT in the name of this Swiss customer, who will be able to recover the input tax if he