Difference for Italian customers if I issue German invoice or Swiss invoice

Finance, Taxes, Banking, Insurance and Retirement
1
Hello

I lived in Germany before and I am a freelancer.

Since I moved to Switzerland I need to issue Swiss invoices to my clients, I only offer consultant service, no physical products.

I would like to ask if anyone knows that the difference for Italian customers if I issue a German invoice or a Swiss invoice?

Thanks a lot

Selena

2
Not an expert, but guess a Germany one would be in € and a Swiss one in CHF? So the exchange rate costs and charges?

If VAT is involved it could get complicated.

3
Second person who is not an expert, but I would expect that you would need to add VAT on the German one since in the EU. Since CH is not in the EU you would not need to add VAT.

And obviously the question of € and CHF .

4
You can bill in any currency. I used to bill in € and £.

5
Nothing to stop you invoicing in Euro's from a Swiss based address, nor in Swiss Francs from a German one.

Apart from VAT issues, if any, the rest I'd say is down to the client and what he prefers.

6
We do as well, depending on the customer.

Tom

7
How could you legally still issue a German invoice would be the starting point... and the other thing is who did the Italian contract with a Swiss entity or a German one. And then there is the issue which vat rules apply. Your Italian customers need to get correct invoices so the can record and reclaim correctly without any legal implications for them should they be audited.

8
You have to issue a swiss invoice (you are based in Switzerland), unless your company is based in Germany, then you can invoice from Germany (but you have to figure out how you can legally work for a company based in germany).

No VAT required, then, but check it again with the relevant authorities

https://europa.eu/youreurope/busines...sellservices-1 (eu side)

as well as

https://www.s-ge.com/en/non-sbh (swiss side)

9
Thanks, in that case I do not need to apply a VAT code? and for customers, which way they benefit more from the tax reduction? In other words, they can pay less tax. thanks again!!

10
You are right, since I do not live there anymore, they canceled my tax number

11
I have done some research!

1. when you sell a service to another country, you do not need to pay VAT.

2. When you sell your service from CH to another country, and if the party needs an invoice, you need to have a VAT number. I am trying to apply it now.

3. if the yearly invoiced amount less than 100.000 CHF which I will not reach, no income tax will be charged.

please correct me if I am wrong.

Thanks

12
You don't need to charge Swiss VAT if you sell it to someone outside of Switzerland.

Income tax is something completely different - it is not VAT.