Liechtenstein VAT on digital services – non-residents

Foreign VAT obligations; administered via Swiss tax authorities

The Principality of Liechtenstein imposed Value Added Tax on digital or electronic services in 2010. There is a global income VAT registration threshold of CHF100,000. Liechtenstein and Switzerland have a common VAT policy, therefore the rules concerning the collection of the tax and the VAT rates are the same in the two countries. Liechtenstein has adopted the Swiss VAT rules with local administration and the territories of both states form a common VAT domestic territory.

What e-services are subject to Liechtenstein VAT?

The following services are liable to Liechtenstein VAT:

• App’s
• Broadcast television or radio
• Mobile phone, texting and data services
• Downloads or streaming music, film and games
• Online gambling and games of chance
• Software as a Service (SaaS) or downloadable software
• Web hosting
• Data, including images

VAT registration and compliance for digital services

Like Switzerland, there is a CHF100,000 for global sales VAT registration threshold in Liechtenstein.  There is no simplified VAT registration process for non-residents. And they must appoint a Fiscal Representative and apply through an online application or through filling the paper forms provided by the tax authority in Liechtenstein.

The compliance falls to non-resident facilitating marketplace in the case they arrange, introduce the transactions and control terms and conditions.

B2B digital services reverse charge

B2B transactions should be zero-rated by a non-resident. And the business customer may report the transaction as reverse charge in their own return. Once VAT registered, foreign businesses have to declare all default services ren- dered to a recipient in the Liechtenstein Territory regardless whether the recipient is registered for VAT or not.

Europe VAT on digital services