VAT on disbursements

Finance, Taxes, Banking, Insurance and Retirement
1
Slightly left field....

Do you know if MWST is due on disbursements? I will pay for a service in the USA and recharge that (at cost) to my client in Switzerland. I think the process works like this:

Supplier - invoices me in USD without VAT (as a cross border supply)

Me - invoice my client in USD with MWST on the disbursement.

Me - pay the money across to the authorities.

End

In the UK this would definitely be VATable and I - sort of - assume it will be the same here. But I am not sure....

Many thanks in advance.

2
The rules for charging MWST here are not based on how or where you acquired the goods or whatever.

Your supplier bills Swiss customers (you or maybe also others), if the total of all the bills exceeds CHF 100,000 then the supplier must register for Swiss MWST.

3
Thanks. I've not been clear, apologies. Please ignore the bit about supply location as it's a red herring.

The question is whether I need to charge VAT on the supply for goods/services bought directly to do the work.

4
The source is not relevant for VAT calculation, every supplier buys goods and/or services for later supply.

Out of interest, I have a Swiss friend who was importing and reselling goods here. The MWST department deemed his profit margin too low and he had to pay MWST at their "market" price.

Did you follow my point that your US supplier will have to register for Swiss VAT if the volume of supply is large enough?