Selling abroad from your Swiss online shop
Although Switzerland is not an EU member, it is an excellent logistics hub for international e-commerce. Thanks to its central geographic position, advanced transport infrastructure and a digitalised customs system (e-dec), Swiss SMEs can reach the main European markets in 2–5 working days. However, selling abroad involves specific tax and customs obligations that must be understood and managed correctly.
For a Swiss e-commerce business, every shipment abroad is an export for VAT purposes. This means the sale is exempt from Swiss VAT (0% rate), but the customer may have to pay duties and VAT in the destination country. Correctly managing these aspects is crucial for the purchasing experience and the competitiveness of your shop.
In this guide we analyse all the critical steps: from zero-rate VAT documentation to carrier selection, from DAP/DDP Incoterms to duty thresholds in major markets, through to compliance platforms and international returns management. With practical examples and costs in CHF.
Zero-rate VAT exports: requirements and documentation
The LTVA (art. 23 para. 2 no. 1) provides VAT exemption for supplies of goods exported abroad. To apply the 0% rate you must meet precise documentation and proof-of-export requirements:
E-dec export customs declaration
Every shipment abroad must be accompanied by an export customs declaration (e-dec export). The FOCBS e-dec system automatically generates the shipment reference number and the MRN (Movement Reference Number) code which serves as primary proof of export. For shipments valued below CHF 1,000, a simplified declaration may be used.
Proof of export for the FTA
The FTA requires proof that the goods have actually left Swiss territory. Accepted documents: e-dec confirmation with customs stamp, international consignment note (CMR), carrier tracking with delivery confirmation abroad, destination country customs receipt. Retain all documents for at least 10 years.
Invoicing without VAT
The invoice to the foreign customer must clearly indicate the VAT-exempt export with the wording 'Export exempt under art. 23 para. 2 no. 1 LTVA'. The amount is stated without Swiss VAT. Do not charge the destination country's VAT on the invoice unless you are VAT-registered in that country.
Annual threshold and registration obligation
If your total turnover (domestic + export) exceeds CHF 100,000 annually, you are required to register for VAT with the FTA even if most sales are abroad. Exports must still be declared in the quarterly/semi-annual VAT return, in the line for exempt supplies with input tax deduction entitlement.
Input tax deduction on purchases
Even though foreign sales are at 0% VAT, you are entitled to full input tax deduction (Vorsteuer) on purchases related to exports: materials, packaging, shipping services, marketplace commissions. This is a significant competitive advantage for Swiss exporting e-commerce businesses.
Warning: if you cannot document the export (e.g. the parcel is returned at customs or the customer refuses delivery), the FTA may require payment of Swiss VAT on the entire transaction. Always retain proof of export and complete tracking.
International shipping options from Switzerland
The choice of carrier affects costs, delivery times and customs handling. Here is a comparison of the main options for Swiss e-commerce businesses shipping to Europe and worldwide:
| Carrier | Indicative cost (EU) | Delivery time | Tracking | Customs handling |
|---|---|---|---|---|
| Swiss Post International | CHF 12–25 (parcel up to 2 kg) | 3–7 working days | Full with Priority | CN23 declaration included; basic customs clearance |
| DHL Express | CHF 30–55 (parcel up to 2 kg) | 1–3 working days | Full real-time | Full customs clearance included; optional DDP duty management |
| UPS | CHF 28–50 (parcel up to 2 kg) | 2–4 working days | Full real-time | Customs brokerage included; Trade Direct option |
| FedEx | CHF 32–58 (parcel up to 2 kg) | 1–3 working days | Full real-time | Customs clearance included; Electronic Trade Documents |
| Aggregators (Sendcloud, Packlink, MelonPost) | CHF 8–20 (negotiated rates) | Variable (depends on chosen carrier) | Unified multi-carrier | Automatic CN23 generation; e-commerce integration |
Incoterms for e-commerce: DAP vs DDP
Incoterms (International Commercial Terms) define who pays what in an international shipment. For B2C e-commerce, the choice between DAP and DDP has a direct impact on the customer experience:
DAP (Delivered At Place) — customer pays duties and VAT
With DAP, the seller pays transport to the destination, but the customer must pay customs duties and import VAT upon delivery. The carrier charges these costs to the recipient (often with a handling surcharge of EUR 10–15). Advantage: lower shipping costs for the seller. Disadvantage: the customer receives a 'surprise' at delivery, with risk of refusal and return.
DDP (Delivered Duty Paid) — seller pays everything
With DDP, the seller prepays all costs: transport, customs duties and VAT in the destination country. The customer receives the parcel with no additional charges, exactly like a domestic purchase. Advantage: excellent purchasing experience, higher conversion rate. Disadvantage: the seller must estimate and manage foreign duties and VAT, with risk of reduced margins.
Impact on conversion rates
Industry studies show that e-commerce shops offering DDP achieve a 15–30% higher conversion rate compared to those using DAP, especially on orders below EUR 150. The reason: European customers are accustomed to 'all-inclusive' prices and abandon their cart when they discover additional costs at delivery.
Hybrid solution: DDP above threshold, DAP below
Many Swiss e-commerce businesses adopt a hybrid approach: DDP for orders above a certain threshold (e.g. CHF 100) and DAP for small orders where the margin does not cover the duty advance. Some display the total DDP cost at checkout and let the customer choose whether to pay upfront or at delivery.
Warning: with DAP, up to 15–20% of parcels to the EU are refused by the recipient due to unexpected customs charges. Every return involves re-shipping costs and potential re-importation issues into Switzerland. Carefully assess whether the DAP savings compensate for return losses.
Duties and VAT in key destination markets
Each country has different thresholds, rates and rules for imports from non-EU countries like Switzerland. Here is an overview of the 5 most relevant markets for Swiss e-commerce:
| Country | Duty exemption threshold | Standard VAT rate | Duty treatment |
|---|---|---|---|
| Germany (DE) | EUR 150 (duty exemption); VAT always due | 19% (7% reduced) | Variable duties 0–12% above EUR 150; IOSS for VAT below EUR 150 |
| France (FR) | EUR 150 (duty exemption); VAT always due | 20% (5.5% reduced) | Variable duties 0–12% above EUR 150; IOSS mandatory since 2021 |
| Italy (IT) | EUR 150 (duty exemption); VAT always due | 22% (10% / 4% reduced) | Variable duties 0–12% above EUR 150; Agenzia delle Dogane handles clearance |
| United States (US) | USD 800 (de minimis: duty + tax exemption) | 0–10% Sales Tax (varies by State) | Variable duties by HS code; below USD 800 generally exempt |
| United Kingdom (UK) | GBP 135 (duty exemption); VAT always due | 20% (5% reduced) | Variable duties above GBP 135; seller must register for UK VAT below GBP 135 |
Cross-border compliance platforms
Manually managing duties, foreign VAT and customs documentation is complex and risky. Several platforms automate compliance for e-commerce businesses selling abroad:
Zonos (formerly Igloo)
Leading platform for real-time calculation of international duties, taxes and shipping rates. Integrates with Shopify, WooCommerce and marketplaces. Displays the total DDP cost at checkout, automatically calculating the HS code, destination country duties and foreign VAT. Ideal for medium-to-high volume e-commerce.
Global-e
Complete solution for international e-commerce localisation: currency conversion, local pricing, payment methods, duty and VAT calculation, returns management. Global-e acts as merchant of record in destination markets, eliminating the need for foreign VAT registrations. Suited for brands with global ambitions.
MelonPost
Swiss shipping aggregator specialised in cross-border e-commerce. Offers negotiated rates with multiple carriers, automatic customs document generation (CN23, commercial declarations), unified tracking and returns management. Particularly suited for Swiss SMEs with 50–500 shipments/month.
IOSS (Import One-Stop Shop) EU
The EU IOSS system allows non-EU sellers (including Swiss) to collect VAT at the point of sale for orders under EUR 150 and remit it through a single contact point. The customer pays nothing on delivery, and the parcel clears customs without stops. IOSS registration requires a fiscal intermediary based in the EU.
AccountEX + e-commerce integrations
AccountEX manages the accounting of international sales with automatic separation of zero-rate VAT exports, multi-currency payment reconciliation (CHF, EUR, USD, GBP), and VAT return generation with correctly classified exports. Integration with leading shops (Shopify, WooCommerce) automatically imports orders.
Tip: if you regularly sell in the EU for amounts below EUR 150, IOSS registration enormously simplifies the customer experience and reduces returns from unexpected customs charges. The cost of the fiscal intermediary (EUR 200–400/month) quickly pays for itself through increased conversion rates.
Managing international returns
Returns from foreign customers are more complex and costly than domestic ones. Here are the critical points to manage:
Re-importation into Switzerland and duties
When a product returns to Switzerland, it is technically an import. To avoid paying Swiss duties and VAT on the return, you must declare the goods as a 'return of export' (Rücksendung) at Swiss customs, presenting the original e-dec declaration and the return tracking. Without this documentation, the FOCBS may charge 8.1% VAT on the value of the returned goods.
Return shipping costs
Return shipping from abroad typically costs 50–100% more than the original shipment, because the parcel must clear customs again. Indicative costs: EUR 15–25 for an EU return via Swiss Post International, up to CHF 40–60 with express courier. Consider whether to offer free returns or customer-paid returns based on your margin.
Refund accounting
The refund to the foreign customer must correctly reflect the accounting: reversal of the zero-rate VAT export invoice, possible reversal of prepaid duties (in DDP cases), recording of the return shipping cost as an operating expense. If you used IOSS, you can deduct the VAT already paid in the following period's return.
Restocking and warehouse
After re-importation, the returned product must be inspected, repackaged and restocked. For low-value products, the cost of return + re-importation + restocking can exceed the product's value. Some Swiss e-commerce businesses choose to refund the customer without requiring physical return for orders below CHF 30.
Practical tips for cross-border e-commerce
- Always show the total price (product + shipping + duties + foreign VAT) at checkout: transparency reduces cart abandonment and returns from 'customs surprises'. Use an integrated landed cost calculator
- Register with the EU's IOSS system if you regularly sell in Europe for amounts below EUR 150 — the customer pays nothing at delivery and your conversion rate increases significantly
- Correctly classify your products with 8-digit HS (Harmonized System) codes: an incorrect code can cause higher-than-expected duties or customs blocks. The FOCBS offers a free tariff classification service
- Retain all proof of export (e-dec, CMR, tracking with delivery confirmation abroad) for at least 10 years — they are essential for input tax deduction and in case of an FTA audit
- Consider an EU fulfilment warehouse (e.g. Amazon FBA, or a 3PL in Germany) if your European sales volume exceeds 200 shipments/month — you eliminate customs costs and offer faster deliveries
- For returns from abroad, plan a clear procedure: prepaid return label (if offering free returns), customs declaration instructions for the customer, and an internal re-importation process with a return declaration to the FOCBS
- Use AccountEX to automate international sales accounting: automatic separation of zero-rate VAT exports, multi-currency reconciliation, and VAT return generation with correctly classified exports and deductions
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