Refund security deposits for foreign companies Switzerland

VAT'S IMPORTANT - NEWSLETTER 2025 - 10

NEWSLETTER 2025 - 10

Refund of security deposits for foreign companies in Switzerland

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Until recently, foreign companies were only included in the VAT register if they provided a security deposit. This could either be an interest-free cash deposit into an SFTA account or a bank guarantee from a bank based in Switzerland. For some time now, the SFTA has no longer required foreign-based companies to provide security deposits when registering.The SFTA is currently reviewing the refund of existing security deposits. Due to the volume involved, the reversal is being carried out in stages.

The SFTA has not communicated a binding deadline. Based on our experience it is realistic to expect this process to take several months to over a year, depending on:

• The number of securities to be returned and internal prioritization

• The amount of work involved in each case (identification of the security deposit, comparison with the VAT register entry, fiscal audit)

• Completeness and timeliness of the bank details provided or any notifications of deviating account details

• Technical and personnel processing capacity

The SFTA will usually inform the clients or fiscal representatives of the refund in an official letter; requests for priority treatment will not be considered. If the payment is to be made to an account other than the one known to the SFTA, this can be reported to the Authorities.

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We will be happy to assist you with any questions you may have in the area of VAT.

Your terraVAT team

Sabrina Frey Dr. Florian Hanslik

Manager Founding Partner