Switzerland is an interesting market for Italian companies; however, selling products from Italy in Switzerland is not as simple as it may seem due to some peculiarities.
The case of Switzerland is decidedly different from all other European states, as despite being geographically located in Europe, it is not part of the European Union. This entails legislation that partially applies to countries outside the European geographical borders.
What does this mean? It means that even if you live a few kilometers from the border, shipments from Italy to Switzerland are considered shipments to a non-European country and are therefore subject to customs and customs clearance processes with the obligation to produce documents and pay duties and taxes.
Starting from June 2022, Yocabè provides partner companies with the opportunity to sell in Switzerland using the same logistics methods as Swiss companies.
Thanks to commercial partnerships established with Swiss Post for shipments and Asendia for the warehouse, Yocabè has created the best possible user experience for a Swiss user who purchases products from outside Switzerland.
Thanks to this project that allows us to ship packages directly from Switzerland, the customer who receives the product will not have to pay VAT, which they would have had to pay if the goods had been shipped directly from Italy.
So what are the aspects to consider when deciding to sell products to a country like Switzerland? Why is it a special case in Europe?
Swiss customs: what you need to know
As a non-EU country, it is essential to carefully plan all activities related to the shipment of goods when selling in Switzerland, both inbound to the foreign country and outbound for the possible management of returns.
It is important to pay close attention to the regulations on import and customs operations for customs clearance upon entry and exit of goods.
Export declaration
As for all non-EU countries, in Switzerland the export declaration is mandatory; in case the value of the goods does not exceed 1000 euros or the weight is not over 1000 kg, it can be done verbally.
If instead the value or weight exceed the legal limit, the declaration must be made electronically.
Be careful with weight and turnover!
Regardless of weight, when importing goods into Switzerland, it is necessary for the documents to clearly indicate the weight of the goods, as it is based on this that Switzerland sets customs tariffs. If the weight is not correct, delays or higher taxes than expected may be incurred.
It is therefore advisable to check in advance with customs the total taxes related to the weight of the goods.
For sales turnover in Switzerland, the limit is 100,000 Swiss francs. When this amount is exceeded, the company must register for VAT, register autonomously with the Federal Tax Administration, and contact a tax representative with residence or headquarters in Switzerland.
When deciding to sell and ship to Switzerland, the Swiss customs authorities are responsible for applying any duties or taxes, which are usually attributed to the recipient so that the goods can enter the country.
When completing customs documents related to incoming goods, it is necessary to be very careful, complete, and precise. It is also advisable to rely on the best and most reliable couriers in circulation.
How to sell in Switzerland: calculating customs duties and taxes
Calculating duties and taxes to ship to Switzerland requires consideration of various factors, such as the value of the goods, the type of goods, their origin, and their destination.
Generally, goods imported into Switzerland are subject to customs duties and VAT. Customs duties vary depending on the type of product and country of origin, while VAT is 7.7% for most products.
To calculate customs duties and VAT, one can refer to the website of the Swiss customs authority. It is also possible to turn to a shipping agency or courier that can manage the entire import process, including customs duties and VAT.
To determine customs duties and taxes applicable to the import and export of goods, Switzerland, like Italy, uses the Harmonized System (HS): an international numerical classification system for goods used worldwide to facilitate trade between countries.
Switzerland also uses the Combined Nomenclature (CN), a more detailed version of the HS developed by the European Union for trade among EU members. The CN is used in Switzerland for goods in transit through the EU and for trade with the EU.
In Switzerland, imported goods are subject to VAT if their value exceeds the VAT exemption threshold, which is currently CHF 5.00 for shipments with a value up to CHF 65.00. This means that if the total value of the shipment, including shipping costs, exceeds CHF 65.00, VAT will be applied.
The customs clearance price for shipping goods to Switzerland may depend on various factors, including the country of origin, nature and value of the goods, and the shipping carrier used. Additionally, the calculation of customs clearance costs depends on taxes and customs duties applicable based on the category of the goods and their destination.
In any case, it is important to keep in mind that the importation of some goods may be subject to restrictions or prohibitions, so it is advisable to inquire in advance with the competent authorities in Switzerland.
What to sell in Switzerland: which products cannot be shipped?
As with any international shipment, there are a number of prohibited items or items that require prior authorization, otherwise your shipment will be blocked at the border.
In the case of Switzerland, some items that cannot be shipped to Switzerland due to customs restrictions and safety requirements are:
- Hazardous substances and materials: chemicals, explosives or inflammables, weapons and ammunition.
- Illegal products: e.g. drugs and pornographic materials.
- Counterfeit items: counterfeit products or unauthorized copies of registered trademarks or patented products.
- Animal-origin products: some animal-origin products such as meat, fish, milk and eggs may be restricted or prohibited depending on import conditions.
- Pharmaceutical products: drugs that have not been approved by Swiss authorities cannot be imported.
- Restricted products: some goods, such as works of art, live animals, plants and food products, may be subject to specific restrictions or limitations.
It is important to consult Swiss customs authorities to learn about customs regulations and restrictions in effect, as well as to ensure that the goods you wish to ship comply with applicable regulations.
What is required to sell in Switzerland: which documents are needed?
The documents required by customs authorities to ship to Switzerland are of crucial importance. They include:
- Commercial invoice: this document contains details about the nature, quantity, and value of the goods.
- Customs declaration: this document indicates the value of the goods, their classification in the Harmonized System, and other related information.
- Certificate of origin: depending on the goods, a certificate of origin may be required to demonstrate the product’s origin.
- Other documents: depending on the type of goods, other documents may be required, such as health certificates, conformity declarations, or import licenses.
When shipping to Switzerland, particular attention should be paid to the completion of these documents, as incorrect data communication may cause delays, blocks, or penalty charges.
Choosing the courier
Especially in the case of a shipment outside of the EU, such as to Switzerland, it is essential to rely on a reliable courier with solid experience in international shipping. This has a significant impact on factors such as delivery time: the longer the time spent in customs, the slower the delivery time will be.
It is essential to carefully consider the quality and reputation of the courier rather than the convenience of shipping rates.
Managing returns in Switzerland
In online business, returns are routine, so it is a factor to pay close attention to. Returns are handled as if they were goods exported from the foreign country.
For this reason, a Swiss export declaration is always required, which will be associated with an Italian import declaration, and it is advisable that the return be handled by the same logistics company that handled the import, so that they can access all the data of the outbound journey and request a refund of the taxes previously paid.
The sites for selling in Switzerland: what are the most popular marketplaces
According to Similarweb, among the main marketplaces widely used in Switzerland are:
- amazon.de
- aliexpress.com
- etsy.com
- coop.ch
- manor.ch
Conclusions
ConclusionsSwitzerland represents a great opportunity for Italian companies looking to expand their online business, especially thanks to a marketplace like Zalando.
Being able to tap into the rich Swiss e-commerce market requires knowledge and planning to balance opportunities and challenges.
Yocabè has a deep understanding of Swiss e-commerce, having entered the market with Zalando, and through partnerships with Swiss Post and Asendia, we have achieved a unique mix of international expertise and local knowledge that has enabled many of our brands to achieve growth rates of up to 30%.