Tax law: I want to create an international subscription for my clients, which VAT do I apply?

You offer a subscription available internationally for your clients. As it is a service, the subscription will be subject to value added tax (VAT). It is legitimate to wonder which rate will apply, since the subscription is offered internationally. Lawrence answers this question. 

In principle, any taxable service provided and carried out in Switzerland is subject to Swiss VAT. This is also the case in the vast majority of countries. 

Therefore, you will have to apply the VAT of the country where the subscription is invoiced. 

This is why some subscriptions are more expensive in one country than in another; the VAT rate changes, while the profit for the company must remain the same!

In Switzerland, however, certain services are exempt from VAT. We invite you to read this article to find out if your company must pay VAT or not!

 

Would you like to create an international subscription? Lawrence optimizes the taxation of your company and assists you in all your business ideas!

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