Cross-border B2B Invoicing (Switzerland / EU): VAT, Accounting, and FX
Reading time: 8 minutes | Updated:
By Brice DELHOME, Financial Strategy Expert
- In B2B invoicing between Switzerland and the EU, VAT follows the recipient: for services between businesses, the place of supply is where the client has its seat (Art. 8 para. 1 of the Swiss VAT Act). The invoice is issued excluding VAT.
- An EU company invoices a Swiss client: it is the Swiss company that declares and pays the acquisition tax to the Federal Tax Administration (FTA), if it is registered for VAT or if it purchases more than CHF 10,000 of such services in a calendar year (Art. 45 para. 2 VAT Act).
- A Swiss SME invoices an EU client: the service is not taxable in Switzerland, because its place of supply is at the client's seat, abroad (Art. 8 para. 1 VAT Act). The invoice is issued without Swiss VAT, a reverse-charge statement is recommended, and the client accounts for the VAT in its own country.
- Accounting: for VAT purposes, the invoice is converted into CHF at the monthly average rate or the daily rate published by the FTA (Art. 45 para. 3 VAT Ordinance). If the euro falls before payment, the difference is booked as an exchange loss: CHF 200 on an invoice of EUR 10,000 if the rate moves from 0.95 to 0.93 CHF.
- Bank costs come on top of exchange risk: a bank converting CHF received into a euro account may apply a margin of 1.5% to 3%, and international transfer fees of CHF 15 to 40 per transaction may be added.
Working internationally offers tremendous growth drivers. However, the monetary and fiscal border between Switzerland (non-EU) and the European Union creates real administrative complexity: two VAT systems, two currencies and an exchange difference to account for. This guide details the tax obligations, accounting entries, and solutions to prevent your margins from being eroded by bank fees.
1. Which VAT rules apply to B2B services between Switzerland and the EU?
The golden rule for providing international B2B services is the place of destination principle. Here is how it applies depending on your situation:
Scenario A: An EU company invoices a Swiss client
According to Article 8 para. 1 of the Federal Act on Value Added Tax (VAT Act, SR 641.20), the place of supply is deemed to be where the recipient has the seat of its economic activity.
- The European company (e.g., France) issues an invoice excluding VAT.
- It states why its own country's VAT is not charged. For a French supplier whose client is a taxable person established outside the EU, the French tax administration (page in French) specifies the statement “TVA non applicable – art. 259-1 du CGI” (VAT not applicable, Art. 259-1 of the French General Tax Code); other Member States have their own statements.
- It is the Swiss company that declares and pays the acquisition tax to the Federal Tax Administration (FTA), if it is registered for VAT or if it purchases more than CHF 10,000 of such services in a calendar year (Art. 45 para. 2 VAT Act).
Important exception: some services are supplied in Switzerland whoever the client is, for example services connected with immovable property located in Switzerland (Art. 8 para. 2 let. f VAT Act). A European company providing them must register for Swiss VAT once its total turnover, in Switzerland and abroad, reaches CHF 100,000 a year (Art. 10 para. 2 let. a VAT Act).
Scenario B: A Swiss SME invoices an EU client
The same place-of-recipient rule applies, this time in favour of the client's country.
- The Swiss company invoices excluding VAT: the service is not taxable in Switzerland, because its place of supply is at the client's seat, abroad (Art. 8 para. 1 VAT Act).
- Swiss law does not require a specific statement, but it is recommended to state on the invoice why it is issued without VAT, for example: “Service subject to VAT in the country of the recipient (reverse charge)”.
- The European client self-assesses the VAT in its own country. In France, for example, the purchase of a service from a supplier established outside the EU is subject to French VAT, and the business client is liable for it.
2. How do you record a multi-currency invoice in the accounts?
Invoicing in a foreign currency (for example, a Lyon web agency invoicing in CHF, or a Lausanne fiduciary invoicing in EUR) raises an accounting challenge: the accounting is kept in the reference currency (EUR in France, CHF in Switzerland). There is therefore a time lag between the issuance of the invoice and its collection.
The issuance entry (Example of a Swiss SME invoicing EUR 10,000)
On the day of issuance, the Swiss accountant must convert the amount into CHF to record it. For VAT purposes, they may use the monthly average rate or the daily rate published by the FTA (Art. 45 para. 3 of the VAT Ordinance), for example 1 EUR = 0.95 CHF. The method chosen must be kept for at least one tax period (Art. 45 para. 5 VAT Ordinance).
| Account (Swiss SME Plan) | Description | Debit (CHF) | Credit (CHF) |
|---|---|---|---|
| 1100 | Accounts Receivable (Debtors) | 9,500.00 | |
| 3400 | Service Revenues (Sales) | 9,500.00 |
The collection entry and the exchange difference
The client pays 30 days later. The rate has dropped to 1 EUR = 0.93 CHF. The Swiss company receives the equivalent of CHF 9,300. It therefore incurs an exchange loss that it must recognise in the accounts.
| Account | Description | Debit (CHF) | Credit (CHF) |
|---|---|---|---|
| 1020 | Bank | 9,300.00 | |
| 6940 | Exchange Losses | 200.00 | |
| 1100 | Accounts Receivable | 9,500.00 |
An accounting exchange loss does not depend on the market alone: the exchange margin taken by the bank at the time of conversion comes on top of it.
3. How much does a bank conversion of a foreign-currency payment cost?
On top of the volatility of the EUR/CHF rate, conversion by traditional banking institutions adds two costs for SMEs that invoice in foreign currencies.
If you are a European company receiving a transfer in Swiss francs (CHF) to a euro (EUR) account:
- The sending or receiving bank may charge international transfer fees (around CHF 15 to 40 per transaction depending on the institution), as the transfer is not a SEPA transfer in euros.
- The receiving bank converts the CHF into EUR at its own commercial exchange rate, which includes a margin (spread) that can reach 1.5% to 3% compared with the interbank market rate.
On an invoice of CHF 20,000, a margin of 1.5% to 3% cuts turnover by CHF 300 to 600. This is a financial burden that adds no value to the business. To measure the gap, you can check the real CHF/EUR market rate before accepting the rate offered by your bank.
The ibani solution: localise collections
One B2B strategy is to offer local invoicing to the client while keeping the cost of conversion under control. For this, ibani offers businesses:
- A personal Swiss transit IBAN: if you are in Europe, we assign you a CH (Swiss) IBAN in your name. Your Swiss client pays you in CHF by a domestic transfer, without any currency exchange on their side.
- A known exchange margin: once the funds are received, ibani converts them at the real market rate, plus a margin of 0.40% to 0.15% depending on the amount.
- Transfer to your main account: the converted funds are transferred to your company's bank account in EUR, with no transfer fees charged by ibani.
- A cost shown before validation: the exchange margin is the only cost charged by ibani and it is displayed before each transfer is validated, which makes it easier for your fiduciary or accountant to reconcile the invoice with the amount collected.
Fast compliance process for SMEs and freelancers.
Frequently Asked Questions
Does a European SME need to register for Swiss VAT to invoice a Geneva-based client?
As a rule, no. For a B2B service, the place of supply is the client's seat (Art. 8 para. 1 VAT Act): the European SME invoices without VAT and the Swiss company declares the acquisition tax. Exception: for a service whose place of supply is in Switzerland, such as work on a building located in Switzerland, registration becomes mandatory from CHF 100,000 of total annual turnover.
When does a Swiss company have to pay the acquisition tax?
When it buys services from a foreign company that is not entered in the Swiss VAT register and meets one of the two conditions of Art. 45 para. 2 VAT Act: being registered for VAT itself, or purchasing more than CHF 10,000 of such services in a calendar year. It then declares and pays the tax to the FTA.
How do I account for an invoice issued in a foreign currency?
The invoice is recorded in the accounting currency, CHF for a Swiss company. For VAT purposes, the conversion uses the monthly average rate or the daily rate published by the FTA (Art. 45 VAT Ordinance). On payment, the difference between that rate and the collection rate is booked as an exchange gain or loss: a loss of CHF 200 on EUR 10,000 if the rate moves from 0.95 to 0.93 CHF.
Which statement should a French invoice to a Swiss client carry?
The invoice is issued without French VAT, because the place of supply is at the client's seat, in Switzerland. For a taxable client established outside the European Union, the French tax administration specifies the statement “TVA non applicable – art. 259-1 du CGI”. For a taxable client established in another EU Member State, the statement is “Autoliquidation” (reverse charge).
Why avoid receiving Swiss francs into a euro account?
Because the bank receiving the CHF converts them at its own commercial exchange rate, with a margin that can reach 1.5% to 3% compared with the interbank rate, and international transfer fees of CHF 15 to 40 may be added. On an invoice of CHF 20,000, the margin alone means CHF 300 to 600 less turnover.
Official sources
- Federal Act on Value Added Tax (VAT Act, SR 641.20), Art. 8 (place of supply of services), Art. 10 (tax liability, CHF 100,000 threshold) and Art. 45 (acquisition tax, CHF 10,000 threshold) — Fedlex (English translation, not legally binding), accessed 30 September 2026
- Ordinance on Value Added Tax (VAT Ordinance, SR 641.201), Art. 45 (consideration in foreign currency) — Fedlex (English translation, not legally binding), accessed 30 September 2026
- Foreign exchange rates published for VAT (monthly average rates and daily rates) — Federal Tax Administration, accessed 30 September 2026
- Services between taxable persons: general rule, reverse charge and the statement “TVA non applicable – art. 259-1 du CGI” (in French) — impots.gouv.fr, accessed 30 September 2026
- BOI-TVA-CHAMP-20-50-20: place of supply of services, general rules (taxable client established outside the European Union) (in French) — BOFiP-Impôts, accessed 30 September 2026