B2G E-Invoicing in Switzerland

E-invoicing in Switzerland is mandatory for B2G transactions for contracts over CHF 5,000 as it follows in the steps of the EU, its major trading partner.

E-Invoicing, also known as electronic invoicing, is a contemporary method that allows businesses to exchange invoices in a structured digital format. While the Swiss e-invoice is in a hybrid format, there are still many benefits such as ease of cross-border trade and efficiency the in the invoicing process.

Implementation timeline of e-invoices in Switzerland

• January 2016: Mandatory B2G e-invoicing for contracts over CHF 5,000 (approx. EUR 5,195).

Is e-invoicing mandatory in Switzerland?

Although Switzerland is not a part of the EU, since it is a prominent trade partner, Swiss legislation is likely to follow the Directive set forth by the European Commission in order to enable ease of trade.

E-invoicing has been mandatory since January 2016 in Switzerland for contracts with a value over CHF 5,000 (approx. EUR 5,195). E-invoices for B2B and B2C transactions are also recommended by the Swiss Federal Tax Administration (FTA) due to the many benefits already seen in European e-invoicing.

Requirements for e-invoicing

Format

The recommended format in Switzerland is a hybrid of the ZUGFeRD/Factur-X standard for e-invoicing, but any format that complies with the Swiss Value Added Tax Act can be used.

A hybrid invoice means that the e-invoice is in PDF format, and then the invoice data is embedded into an XML file. This makes it easier for small and medium-sized enterprises (SMEs) to issue e-invoices despite the fact that it is a less efficient and manual process compared to full e-invoicing.

Validity

Switzerland has not required e-invoices to be signed with a digital signature since 2016, according to the Swiss Electronic Signatures Act (ZertES/SCSE), but issuers may now use electronic signatures.

Archive

E-invoices in Switzerland must be stored in their original format for 10 years according to Article 958f of the Swiss Code of Obligations.

Steps for sending an electronic invoice in Switzerland

1. Firstly, an e-invoicing service provider needs to be chosen in order to facilitate the exchange of e-invoices. Invoice issuers can choose from a range of e-invoicing service providers, such as DDD Invoices.

2. Next, the e-invoice can be created through the e-invoicing solution, which is a registered E-invoicing Service Provider (ESP), which should contain all of the necessary information for a compliant invoice.

3. Thirdly, the invoice can be sent directly to the client through the software or by email. If the invoice is sent by email, make sure that it is sent from a secure email address that has encryption in order to make sure that the invoice will be authentic and verifiable.

Benefits of e-invoicing and online fiscalization

There are many benefits to e-invoicing that entities can capitalize on:

• Automation - This can aid in reducing human error, speeding up the process, and allowing employees to focus on fewer routine tasks.

• Cost savings - E-invoicing can help save over 60% of the time and money spent on paper invoices.

• Compliance - Through utilizing a service provider such as DDD Invoices, companies do not have to create their own e-invoicing system and do not have to deal with the bureaucracy that comes with both of these processes.

How DDD Invoices can help your business

Here are the benefits of choosing DDD Invoices as your e-invoicing and digital reporting system:

• Unlock the ability to send and receive e-documents around the world, without worrying about local e-invoicing regulations. Through our API, we automatically fill in your invoice data and send the invoice to the proper authorities, letting you focus on your core business processes and we manage the bureaucracy.

• Seamlessly integrate into your current invoicing system, ERP, or CRM in as little as one day. Enjoy an error-free and automated invoicing process through our secure and reliable service.

FAQs about e-invoicing in Switzerland