Swiss VAT refund: How to reclaim as a non-resident business

If your business incurs expenses in Switzerland in relation to commercial activities, you may be eligible to recover the value added tax (VAT) paid on such expenses, even if you don’t hold a Swiss VAT number.

This guide provides a comprehensive overview of the Swiss VAT refund procedure, including eligibility requirements, the application process, and recent updates for 2026.

Whether you’re attending a trade show, meeting with clients or suppliers, or covering travel costs, understanding the Swiss VAT refund process can save your business money and reduce the tax burden of foreign expenses.

Mathias Bopp

Partner, Head of Indirect Tax

KPMG Switzerland

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Michaël Vincke

Director, Indirect Tax

KPMG Switzerland

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What is new in 2026?

What is the Swiss VAT Refund?

While companies with a Swiss establishment as well as companies registered for Swiss VAT can generally reclaim Swiss VAT through their recurring Swiss VAT returns, non-resident businesses that are not registered for Swiss VAT cannot. Instead, the latter may apply for a VAT in Switzerland refund under a separate process through the Swiss Federal Tax Administration (SFTA).

Non-resident companies often pay Swiss VAT on various business-related expenses, such as travel, accommodation and the purchases of goods and services within Switzerland. Over the course of a year, the accumulated Swiss VAT can add up to a substantial amount. Often, this is simply viewed as another expense. In many cases, however, the Swiss VAT could be recovered by submitting a claim to the SFTA.

This process is similar to the VAT refund mechanisms available in other jurisdictions, such as those under the 8th or 13th VAT Directive in the EU.

The Swiss VAT refund scheme allows foreign businesses that are not registered for Swiss VAT to recover the VAT paid on eligible goods and services acquired in Switzerland.

Who can claim a Swiss VAT refund and what are the key conditions?

To benefit from the Swiss VAT refund procedure, the criteria set out below must be met simultaneously. Failure to meet any one of these criteria would likely render the company ineligible for the Swiss VAT refund procedure.

Eligible business

The Swiss VAT refund procedure can only be used by businesses who are not established in Switzerland and are not registered (or obliged to register) for VAT within the country.

In other words, the Swiss VAT refund procedure is not applicable for businesses if:

Residence, place of business or permanent establishment

They have a residence, place of business or permanent establishment in Switzerland; and/or
Registered, or obliged to register, for Swiss VAT

They are registered, or obliged to register, for Swiss VAT due to their business activities in Switzerland.

For companies with business activities in Switzerland, it is therefore key to understand whether such activities may trigger a VAT registration requirement in Switzerland. If it does, any Swiss VAT incurred on expenses cannot be reclaimed via the Swiss VAT refund procedure.

Instead, refunds should be settled via the recurring Swiss VAT returns. If the business is however not required to register for VAT in Switzerland, the Swiss VAT refund procedure may be applied, provided all other conditions are fulfilled.

In addition, further specific limitations and requirements may apply for specific expenses or certain businesses. For example, foreign travel agencies can only reclaim Swiss VAT on goods and services that are not re‑invoiced to their customers.

Proof of entrepreneurial status

To be entitled to a refund, the foreign company must submit proof of its business character in the country of domicile, of the place of business or of the involved permanent establishment.

This proof of entrepreneurial status should be issued by the foreign tax authority and confirm the entrepreneurial status (or VAT registration) during the period for which the VAT refund is claimed or indicate the date on which the applicant obtained entrepreneurial status.

The proof must be valid for the refund period (i.e. the calendar year during which the expenses were incurred).

Eligible home country

Not all foreign companies can benefit from the Swiss VAT refund procedure. The SFTA also requires that a corresponding reciprocal right be granted by the country of domicile, of the place of business or of the permanent establishment of the business (hereafter the “foreign jurisdiction”, here is a list of qualifying countries).

Such reciprocal right is deemed to be given if any of the following three conditions is met:

Similar rights for Swiss companies

Companies with their domicile or effective place of business in Switzerland have the right to claim VAT refunds paid on supplies acquired from the foreign jurisdiction, which in scope and restrictions is commensurate with the input VAT deduction right that companies resident in the foreign jurisdiction have.
No VAT system

The foreign jurisdiction does not have a tax comparable with Swiss VAT.
Different type of sales tax

A different type of sales tax is imposed in the foreign jurisdiction, which affects companies with their domicile or effective place of business in the foreign jurisdiction in the same way as enterprises with their domicile or effective place of business in Switzerland.

Eligible expenses

Only expenses directly related to business activities of the company qualify for a VAT refund. Such expenses include:

Hotel and accommodation costs
Conference and exhibition fees
Employee travel and transportation within Switzerland
Training and education programs
Purchase of goods in Switzerland
Importation of goods into Switzerland (i.e. import VAT)

Furthermore, such expenses should all be made within the same calendar year underlying the VAT refund claim.

Proof of expenses

In order to substantiate the VAT claim, the applicant needs to provide proof of the expenses and attach this evidence to the VAT refund claim.

Appropriate documents are purchase invoices or, in case of import VAT, the import assessment orders issued by the Swiss Federal Office for Customs and Border Security (FOCBS). The documents need to be addressed to the company filing the VAT refund claim and all invoices must meet the formal invoice criteria according to the Swiss VAT Act. They should also be dated within the same calendar year underlying the VAT refund claim.

Minimum amount

To qualify, the total VAT being claimed must meet a minimum threshold of CHF 500 per calendar year.

If the total Swiss VAT amount incurred during the calendar year does not meet this minimum threshold, the VAT refund procedure cannot be applied and VAT may have to be considered as an irrecoverable expense for the company.

Swiss VAT representative

The applicant must appoint a representative with place of residence or business in Switzerland in order to file the VAT refund claim.

Any Swiss-domiciled natural or legal person (e.g. KPMG Switzerland) may be appointed. The SFTA requires proof of the status of the Swiss VAT representative in the form of a power of attorney for the specific VAT refund claim.

This implies that foreign businesses cannot file Swiss VAT refund claim directly themselves.

Timely and formal application

VAT refund applications must be submitted using the official SFTA forms. Please note that only one application may be submitted per calendar year.

The application for the VAT refund can be submitted from 1 January to 30 June of the following calendar year. It is important that the VAT refund is filed in due time, i.e. by the deadline of 30 June, as this deadline cannot be extended. The date of the postmark is of importance here. Any belated filing will not be handled by the SFTA.

What is new in 2026?

VAT refund claims for Swiss VAT incurred in 2025 must be submitted by 30 June 2026 at the latest.

There have also been a few changes compared to last year, and these should be taken into account when preparing the VAT refund application for 2025:

Travel agencies

Foreign travel agencies can no longer reclaim Swiss VAT on goods and services that are re-invoiced to their customers. Only non-re-invoiced expenses remain eligible. This change follows from the new VAT regulation for travel agencies.
Entitlement clarification

Following the adjustment of some articles in the law relating to the release of a Swiss VAT registration, it has been clearly reconfirmed that foreign companies remain entitled to a refund if they provide in Switzerland exclusively VAT-exempt services that confer a right to input VAT deduction and have not opted to register voluntarily for Swiss VAT.
Formal requirements

It has been reconfirmed that applications must include invoices or electronic import documents (eVV) in the applicant’s name that meets Swiss VAT law requirements to entitle the applicant to a VAT refund. VAT on mere cash receipts, parking tickets or train tickets is not refundable.
Aircraft industry

For companies in the aviation sector, it has been clarified that, under certain conditions, for example for warranty services or "fractional ownership" programs, a VAT refund for services received in Switzerland or for import VAT is possible.
Formal application

Companies should ensure they are using the latest version of the application form, which has been updated since last year.

How can KPMG help?

KPMG provides tailored support throughout the Swiss VAT refund claim process. Whether you need guidance from start to finish or are looking for targeted assistance with specific steps, we can help.

Verifying whether all criteria for reclaiming Swiss VAT through the VAT refund regime are met

Preparing your Swiss VAT claim file and, upon completion, submitting it to the SFTA

Acting as your Swiss VAT representative (in line with the legal requirement for Swiss VAT refunds)

Handling communication with the SFTA until VAT reimbursement is received by your company, including dealing with questions about your claim and any follow-up correspondence

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