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VAT in Liechtenstein

Updated on Friday 28th October 2016

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Value-added-tax -in-LiechtensteinLiechtenstein’s taxation system is comprised of direct and indirect taxes. While direct taxes include the income and the corporate tax, the most familiar indirect tax is the value added tax (VAT). Liechtenstein introduced the VAT in 1995. An interesting fact is that Liechtenstein follows the same VAT regulations as Switzerland, therefore any changes brought by the Swiss tax authorities to the VAT system were adopted by Liechtenstein. This is because the Principality of Liechtenstein is part of the European Economic Area just like Switzerland.

Our company registration consultants in Liechtenstein can offer more information on the country’s taxation system.

Value added tax rates in Liechtenstein

The standard VAT rate in Liechtenstein is 8%. However, reduced also apply, as it follows:

  • -          a 2.5% rate to the delivery of certain products among which foodstuff, medicines, books and newspapers;
  • -          a 3.8% rate applies to accommodation services.

There are also services such as education, healthcare, banking and social security which are exempt from paying the Liechtenstein value added tax.

How does the VAT apply in Liechtenstein?

Both individuals and companies in carrying out commercial activities in Liechtenstein are liable to pay the VAT. The company or the sole trader will impose the VAT on the final products or services they sell, respectively offer. The value added tax is added to the price of these goods or services and once collected it is forwarded to the tax authorities. In order to be collect this tax, all companies are required to register for VAT in Liechtenstein.

Our Liechtenstein company formation agents can offer more information on VAT registration.

VAT registration for companies in Liechtenstein

Not all companies and individuals are required to register for VAT in Liechtenstein. Commercial activities resulting in a yearly taxable income below the 100,000 CHF threshold are subject to voluntary VAT registration in Liechtenstein. It is important to know that EU value added registration regulations do not apply in Liechtenstein, as this country is not part of the European Union.

For information about the value added tax or if you want to open a company in Liechtenstein, do not hesitate to contact us.

 

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