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Collect tax in a European country

Learn how to collect tax in a European country (outside the EU).

In Europe (outside the European Union), Stripe supports tax calculation for businesses making sales into a range of countries. The requirements for tax registration, as well as which types of transactions are included, vary from country to country.

For each country listed, you can find information about:

  • The types of tax Stripe can help you collect.

  • The registration threshold that determines when you’re required to register for tax collection.

  • What kinds of products or sales are subject to tax calculation.

  • The types of transactions covered.

  • Resources about how to register with local tax authorities.

Stripe can collect tax if your business is based in Norway, Switzerland and Liechtenstein, and the United Kingdom. To collect tax on Stripe in other listed European countries, your business needs to be a remote seller with no physical presence (such as a shop or warehouse).

Threshold and registration for Switzerland and Liechtenstein

Foreign businesses that sell to customers in Liechtenstein or Switzerland must register with the Swiss tax administration if their global taxable turnover exceeds 100,000 CHF in a calendar year. They must also register if they expect their global taxable turnover to exceed 100,000 CHF in the next 12 months. If your business meets those criteria, then when you make your first taxable transaction in Switzerland or Liechtenstein, you must appoint a Swiss representative and register in Switzerland.

You don’t need to register in the following cases:

  • Your only sales in Switzerland and Liechtenstein are to businesses (B2B), and the sales are subject to reverse charge.
  • You provide only tax-exempt services to customers in Switzerland and Liechtenstein.

A special VAT rule applies to foreign businesses importing low-value goods into Switzerland or Liechtenstein. These businesses must register if their annual turnover from selling low-value imported goods exceeds 100,000 CHF. The definition of low-value goods varies based on the tax rate: it includes items priced below 62 CHF if the applicable tax rate is 8.1%, and items priced below 193 CHF if subject to a 2.6% tax rate.

Foreign businesses must appoint a fiscal representative to register for VAT purposes in Switzerland and provide cash or bank guarantee for future VAT liabilities.

Supported calculations for Switzerland and Liechtenstein

If you’re based in Switzerland or Liechtenstein, and sell to customers in Switzerland or Liechtenstein, Stripe calculates Swiss VAT unless the sale is exempt or zero-rated.

If you’re a remote seller registered to collect VAT in Switzerland, you must collect VAT on all taxable services and goods you sell in Switzerland or Liechtenstein. If you’re not registered to collect VAT, most services you provide in Switzerland or Liechtenstein are subject to reverse charge. Reverse charge applies to services provided to customers who are registered for VAT or who acquire services exceeding 10,000 CHF in a calendar year that are subject to reverse charge.

If you provide services related to admission to events and other venues, Stripe Tax considers them taxable in the country where the venue or event is located.

Cross-border sales of goods to Switzerland and Liechtenstein

When goods are shipped into Switzerland or Liechtenstein from abroad, Stripe treats the sale as an export and doesn’t calculate tax, unless you choose to calculate tax on cross-border sales of goods into Switzerland and Liechtenstein through the tax registration settings. Generally, businesses need to collect tax on these sales if they act as the importer for customs purposes. If goods are imported in the customer’s name, the sale is considered to occur outside Switzerland and Liechtenstein, and no Swiss VAT is due. However, foreign businesses can apply for an authorization from the Swiss tax administration, called an “Unterstellungserklärung,” to voluntarily register for VAT, act as the importer, and charge Swiss VAT on their sales. Cross-border sales of goods into Switzerland and Liechtenstein might also be subject to import taxes and customs duties in Switzerland and Liechtenstein, which Stripe doesn’t calculate.

Stripe doesn’t calculate VAT on the special regime for low-value goods shipped into Switzerland and Liechtenstein, unless you select the option to calculate tax on cross-border sales of goods into Switzerland and Liechtenstein.

If you provide services related to admission to events and other venues, Stripe Tax considers them taxable in the country where the venue or event is located.