How to Sell DDP to Switzerland: VAT, Customs and Importer Obligations

Selling DDP to Switzerland: what the Incoterm really means

DDP puts the maximum obligation on the seller

Under DDP, the seller delivers the goods to the Swiss customer with import formalities, customs duties and import taxes already paid. In practical terms, the customer should not receive an import VAT invoice or a customs bill when the parcel or shipment arrives.

For Switzerland, this has one decisive consequence: the seller must be treated as the importer of record on the customs declaration. The declaration may be filed through e-dec or Passar Import, but the importer identity must match the commercial and VAT setup.

If the freight forwarder declares the Swiss customer as importer by mistake, the customer can receive the import VAT bill even though the sale was agreed as DDP. That creates a commercial complaint, a VAT recovery problem and, in some cases, a double payment issue.

Switzerland is not an EU VAT destination

Switzerland is a third country from an EU VAT perspective. It is not in the European Union, not in OSS, not in IOSS and not subject to the EU VAT directives.

That means the usual EU reflexes do not work here:

• no OSS reporting for Swiss domestic VAT;

• no IOSS simplification for low-value imports into Switzerland;

• no EU import VAT deferment mechanism;

• no EU-style reverse charge for domestic supplies of goods between businesses;

• no 8th Directive refund route for Swiss import VAT.

Two Swiss authorities are involved. The Federal Office for Customs and Border Security, known as OFDF or BAZG, handles customs clearance and import VAT at the border. The Swiss Federal Tax Administration, known as AFC or ESTV, handles Swiss VAT registration, VAT returns and VAT payments.

[Watch Out] Do not brief a carrier as if Switzerland were another EU destination. In DDP, the carrier's customs instruction must state who imports, which Swiss VAT number to use if registered, and which Incoterm applies. A wrong importer on Passar can make the VAT unrecoverable.

Who pays Swiss import VAT and customs duties under DDP?

Import VAT is normally 8.1% on the CIF value

Swiss import VAT is collected by the customs authority at the border. For most manufactured goods, the standard VAT rate is 8.1%. The reduced rate of 2.6% applies to specific categories such as basic foodstuffs, medicines and printed books.

The taxable base is not only the price of the goods. It is generally the customs value including the costs needed to bring the goods to the Swiss border, such as transport and insurance. In practice, many operators describe this as the CIF value: cost, insurance and freight.

For a DDP seller, this tax is a cash-flow item only if the VAT chain is correct. If the seller is registered for Swiss VAT and named as importer of record, import VAT can be deducted as input tax in the Swiss VAT return. If the seller is not correctly registered or not named as importer, the same 8.1% may become a final cost.

Swiss customs duties are often calculated by gross weight

Swiss customs duties do not always work like EU ad valorem duties. In Switzerland, many customs duties are calculated by gross weight rather than by the value of the goods.

The classification and duty treatment must be checked in Tares, the Swiss customs tariff portal. The exact rate depends on the commodity code, origin and product category. Industrial goods of EU origin may often benefit from preferential treatment under Switzerland-EU agreements, but only if the origin documentation is correct.

For EU-origin goods, an EUR.1 certificate or an eligible origin declaration on the invoice may reduce or remove customs duties. Without the correct proof of origin, the shipment can be charged at the full Tares rate even when a preferential rate would have been available.

[Expert Tip] Before offering DDP pricing to Switzerland, classify your main products in Tares and check origin documentation. The VAT rate is visible, but customs duty and origin mistakes are often where the margin disappears.

Do you need a Swiss VAT number to sell DDP?

In recurring DDP flows, the Swiss VAT number is usually the safe route

A Swiss VAT number is not just an administrative label. It is what allows the seller to connect three elements: the sales invoice, the customs import declaration and the Swiss VAT return.

Without a Swiss UID/VAT number, import VAT paid at the border is usually not recoverable by a foreign DDP seller. On a EUR 10,000 shipment subject to 8.1% import VAT, that is approximately EUR 810 of VAT absorbed into the seller's cost base.

That is why DDP can look attractive commercially but become expensive operationally when the VAT registration question is ignored.

The CHF 100,000 threshold must be monitored carefully

Swiss VAT liability is triggered when taxable turnover reaches CHF 100,000 per year under Swiss VAT rules. For foreign businesses, the analysis must not be reduced to Swiss sales alone without checking the nature of the supplies and the Swiss taxable activity.

For distance sales of low-value parcels, Switzerland has a specific rule. If import VAT on each parcel is below CHF 5 and the seller generates more than CHF 100,000 per year from such Swiss distance sales, the seller must register and charge Swiss VAT on those supplies.

This is a frequent e-commerce trap. Low-value parcels may be exempt from import VAT at the border because the calculated tax is below CHF 5, but the distance sales threshold can still create a Swiss VAT registration obligation.

The foreign undertaking declaration is legal but costly

Swiss rules allow a foreign business to use a foreign undertaking declaration in some cases. It can let the seller import goods in its own name before full Swiss VAT registration.

The problem is economic. If the seller has no Swiss VAT registration and no proper deduction route, import VAT paid at the border is not recovered. The declaration can be useful for a small market test, but it is not a sustainable setup for repeated DDP shipments.

For example, 20 monthly shipments of EUR 500 each create EUR 10,000 of goods value per month. At 8.1%, the import VAT exposure is around EUR 810 per month. If it cannot be deducted, the seller is silently funding a tax cost that should have been neutral.

The Swiss fiscal representative requirement

A foreign company must appoint a Swiss fiscal representative once registered

A foreign company with no establishment in Switzerland must appoint fiscal representative in Switzerland domiciled in Switzerland when it becomes liable for Swiss VAT. This requirement is set out under Swiss VAT rules, including article 67 LTVA.

The representative is the official contact with the AFC/ESTV. In practice, the representative helps prepare the registration file, handles correspondence, supports VAT returns and makes sure deadlines are monitored.

The representative also carries responsibility for the taxpayer's Swiss VAT obligations. For the foreign seller, this is not a formality. It is the local control point that keeps the Swiss VAT position operational.

Registration takes planning: deposit, documents and timing

Swiss VAT registration for a foreign DDP seller normally requires a complete file. Typical elements include:

• recent trade register extract, usually less than 3 months old;

• articles of association or company statutes;

• VAT certificate or tax certificate from the country of origin;

• description of the Swiss activity and expected turnover;

• Swiss fiscal representation mandate, including the AFC form used by the representative;

• security deposit or bank guarantee where required.

The Swiss Federal Tax Administration generally requires a security deposit equal to 3% of expected annual Swiss turnover, with a minimum of CHF 2,000. Once the file is complete and the deposit is arranged, obtaining the Swiss UID/VAT number usually takes around 3 to 4 weeks.

[Watch Out] Do not launch DDP as a same-week commercial offer if Swiss VAT registration is needed. A missing document or unpaid deposit can add weeks, and shipments may already be moving before the importer setup is ready.

DDP, DAP or DDP excluding VAT: which option should you use?

DDP protects the customer experience but shifts compliance to the seller

DDP is attractive when the buyer should receive a landed-cost experience: no import bill, no customs paperwork and no delivery surprise. This is common in B2C e-commerce, marketplace-style fulfilment and B2B contracts where the Swiss buyer requires a delivered price.

The seller's benefit is commercial control. The seller's burden is tax and customs control. If volumes are significant, DDP should be backed by Swiss VAT registration, clear customs instructions and a reliable import document archive.

DAP can be better for B2B customers that recover import VAT

Under DAP, the seller delivers the goods to the named place, but the Swiss buyer handles import clearance, import VAT and duties. For a Swiss VAT-registered B2B customer, this may be acceptable because the buyer can usually deduct import VAT through its own Swiss VAT return.

DAP is often easier for the foreign seller during early market tests or low-volume B2B sales. It is less attractive for B2C sales because the customer sees taxes and customs fees at delivery.

DDP excluding VAT must be written into the contract

Incoterms 2020 allow parties to modify obligations contractually, including a DDP arrangement where VAT is excluded from the seller's responsibility. This is sometimes called DDP excluding VAT.

This is not the default meaning of DDP. If the parties want the seller to handle customs duties but not Swiss import VAT, the contract, order confirmation and invoice terms must say so explicitly. Otherwise, standard DDP means the seller is taking on taxes as part of the delivered obligation.

[Expert Tip] Use DDP for customer experience only when the back office is ready. For B2B trials, DAP or a clearly drafted DDP excluding VAT clause may be safer until Swiss VAT registration is in place.

How to invoice a DDP sale to Switzerland

B2C invoice: Swiss VAT if the seller is registered

When the seller is registered for Swiss VAT, the B2C invoice should show the seller's Swiss UID/VAT number and apply the relevant Swiss VAT rate, generally 8.1% unless the product falls under a reduced rate such as 2.6%.

The customer pays a VAT-inclusive delivered price. The import VAT paid at the border is not re-invoiced as a separate customer charge. It is treated as input VAT in the seller's Swiss VAT accounting, provided the import declaration supports the deduction.

B2B invoice: do not assume reverse charge on goods

For goods delivered in Switzerland under DDP, the seller should not assume an EU-style reverse charge merely because the customer is a business. Switzerland does not apply the EU VAT Directive reverse charge logic to domestic supplies of goods in the same way.

If the foreign seller is Swiss VAT registered and makes a taxable domestic supply in Switzerland, it normally charges Swiss VAT on the sale. If the parties want a different allocation of import VAT or customs costs, that must be handled through the Incoterm and the contract, not by relying on EU VAT habits.

Mandatory operational references

A compliant DDP workflow should align the invoice, customs file and VAT records. The following references should be consistent:

• seller name and address;

• Swiss UID/VAT number where registered;

• Incoterm, ideally DDP plus named place;

• product description and commodity code;

• origin statement or EUR.1 where relevant;

• import declaration reference from e-dec or Passar;

• customs valuation documents and transport costs;

• proof that the seller, not the customer or carrier, is importer of record.

Which customs documents should be prepared?

Commercial invoice and taxable value

The commercial invoice must support customs valuation. It should show the seller, buyer, goods description, quantities, values, currency, Incoterm and transport details. If transport and insurance costs are not included in the goods price, they may still matter for the import VAT base.

For DDP pricing, finance teams should reconcile the commercial price, freight costs, customs duty, import VAT and final margin. A landed-cost spreadsheet is often needed before the sales team publishes Swiss prices.

Tares classification and origin proof

Tares determines the Swiss customs classification and applicable duties. The classification should be checked before the first shipment, not after the goods are blocked or charged unexpectedly.

Preferential origin proof is separate from VAT. An EUR.1 certificate or eligible origin declaration may reduce customs duty for qualifying goods, but it does not remove Swiss import VAT. Import VAT remains due unless a specific exemption applies.

e-dec or Passar Import declaration

Swiss import declarations are filed through customs systems such as e-dec or Passar Import. The document generated at import is not just a logistics record. It is the evidence needed to support VAT deduction.

For DDP sellers, the importer field is critical. The import VAT deduction is secure only when the registered seller is named correctly and the document can be matched to the Swiss VAT return.

[Watch Out] If the carrier clears the goods in its own name or in the customer's name, the seller may have paid for DDP commercially but lost the document needed to deduct import VAT.

Can Swiss import VAT be recovered?

Recovery is possible when the seller is registered and correctly named

Swiss import VAT can be deducted as input tax in the seller's Swiss VAT return when the seller is Swiss VAT registered, uses the imported goods for taxable activities and holds customs documents naming it correctly as importer.

The deduction is made through the Swiss VAT return filed with the AFC/ESTV. It is not a refund claim under the EU 8th Directive because Switzerland is outside that system.

The VAT return deadline is 60 days after the quarter

Swiss VAT returns are generally filed quarterly. The VAT return and payment are due within 60 days after the end of the reporting period.

Late payment can trigger default interest. The rate to anticipate in this workflow is 4% per year, applied automatically where VAT is paid late.

Since May 2026, the Swiss online filing environment has moved to Dec VAT pro through AGOV, replacing the earlier Dec VAT easy tool. Teams that relied on older process notes should update their internal checklist.

Records should be kept for 10 years

For DDP import flows, the seller should keep the customs assessment decisions, import VAT receipts, invoices, transport records and origin documents for 10 years. The file must prove both the export from the seller's country and the import/VAT deduction in Switzerland.

Checklist before selling DDP to Switzerland

1. Confirm whether DDP is commercially necessary or whether DAP is sufficient for the buyer.

2. Estimate current and forecast Swiss turnover, including low-value distance sales where import VAT per parcel is below CHF 5.

3. Check whether the CHF 100,000 Swiss VAT threshold or recurring DDP importer status creates a registration need.

4. Appoint a Swiss fiscal representative before filing the VAT registration dossier.

5. Prepare the AFC registration file, including company documents, VAT certificate and representation mandate.

6. Budget the Swiss security deposit: 3% of expected Swiss turnover, minimum CHF 2,000.

7. Check product classification in Tares and confirm whether EUR.1 or origin declaration can reduce customs duties.

8. Brief the freight forwarder in writing: DDP, seller as importer, Swiss UID/VAT number where available, e-dec or Passar Import declaration in the seller's name.

9. Configure invoicing with Swiss VAT rates, UID/VAT number and DDP named place.

10. Set the quarterly VAT return calendar: 60-day filing and payment deadline, with 4% annual late-payment interest risk.

[Expert Tip] The best DDP setup is built before the first shipment. Once the wrong party appears on the import declaration, fixing the VAT trail can be harder than registering correctly from the start.

When should a company choose Swiss VAT registration for DDP?

Swiss VAT registration becomes the preferred route when DDP is no longer an occasional service gesture but a recurring sales channel.

This is especially true for:

• e-commerce sellers delivering Swiss customers with landed prices;

• EU brands selling DDP to Swiss distributors or retailers;

• companies approaching or exceeding CHF 100,000 of relevant turnover;

• sellers of goods where import VAT is material compared with margin;

• businesses that need to recover import VAT instead of absorbing it;

• operators whose Swiss customers refuse to deal with customs charges at delivery.

For very low-volume B2B tests, DAP or a contractual DDP excluding VAT setup may be sufficient. For a serious Swiss market rollout, VAT registration, fiscal representation and customs process control are usually the cleaner structure.

Need help securing DDP sales to Switzerland?

DDP can be a strong commercial offer in Switzerland, but only if the VAT, customs and importer setup is aligned before the goods move.

Eurofiscalis can help you assess whether Swiss VAT registration is required, appoint a fiscal representative, prepare the AFC file, configure the invoicing in Switzerland workflow and secure the VAT refund in Switzerland trail.

Book a meeting with a Swiss VAT specialist before launching recurring DDP shipments.