Selling online in Switzerland: what to know before you launch
Swiss e-commerce has never been more active. Between Galaxus dominating traffic, Shopify stores blossoming, dropshippers importing from China, and SMEs digitalising their catalogues, launching an online shop has become possible in just a few hours. But behind the technical simplicity lies an administrative jungle: VAT, customs, import allowances, compliant invoices, customer returns, shipping costs taxable or not. This guide covers the full 2026 obligations for a Swiss e-commerce merchant, whether selling their own products or running a dropshipping operation.
The Swiss e-commerce market in 2026
Swiss online commerce is worth approximately CHF 13 billion per year, with steady growth since COVID. Nearly 90% of Swiss consumers shop online at least once a month, and the average basket (around CHF 140) remains one of the highest in Europe. The market is dominated by a few major players, but leaves plenty of room for independent stores and niches.
The dominant platforms
| Platform | Positioning | Estimated market share |
|---|---|---|
| Galaxus / Digitec | Premium generalist (electronics, home) | ~20% |
| Zalando | Fashion and lifestyle | ~10% |
| Amazon.ch / Amazon.de | All products, fast EU delivery | ~8% |
| Migros / Coop online | Food, drugstore, home | ~7% |
| Brack, Interdiscount | Electronics, appliances | ~5% |
| Independent stores (Shopify, WooCommerce, etc.) | Niches, DTC, craftspeople | ~30% combined |
| Others (marketplaces, auctions, C2C) | Ricardo, Tutti, Anibis | ~20% |
Giants capture the majority of traffic, but margins there are often crushed. Independent stores remain the royal road for merchants who want to keep control of their brand, margins and customer relationships.
Building your own shop: which platform to choose?
| Platform | Strengths | Limitations | Indicative cost |
|---|---|---|---|
| Shopify | Fast to launch, rich app ecosystem | Monthly fees + commissions | CHF 30 to 300/month + 0.5 to 2% |
| WooCommerce | Open source, ultra flexible | Requires hosting and maintenance | CHF 20 to 100/month |
| Shopware | Powerful for B2B and mid-market | Steeper learning curve | CHF 200 to 1,000/month |
| PrestaShop | Free, strong EU community | Less modern than Shopify | CHF 10 to 80/month |
| Wix / Squarespace | Simple, all-in-one | Limited for large catalogues | CHF 20 to 50/month |
Shopify remains the default choice for launching fast, WooCommerce for those who want control over hosting and data. In both cases, the core challenge isn't technical — it's fiscal and administrative.
Which legal structure for a Swiss e-commerce?
Before even setting up your checkout flow, the question of legal form arises. It directly influences invoicing, VAT and liability.
Sole proprietorship: to test without commitment
The sole proprietorship (RI) is the simplest form, and perfectly sufficient to test an e-commerce project below CHF 50,000 annual revenue. Advantages: free setup, light accounting (revenue and expenses), no minimum capital. Drawbacks: unlimited liability on personal assets, less "pro" image in B2B. For a deeper look, check our comparison sole proprietorship or LLC in Switzerland.
LLC (Sàrl): as soon as the business becomes serious
Once the project takes off (supplier contracts, employees, significant stock, potential disputes with customers), the LLC becomes the recommended structure. It requires CHF 20,000 capital but separates personal from business assets. Credible with foreign suppliers, insurers and banks, it's also more comfortable tax-wise once profits exceed CHF 80,000 to 100,000.
Corporation (SA): for high-growth projects
The public limited company (SA) becomes relevant from around CHF 1 million revenue, especially if investors come on board or the merchant plans to raise funds. Capital of CHF 100,000 (CHF 50,000 paid up), more formalised governance, but superior international image.
Swiss e-commerce VAT: the CHF 100,000 rule
VAT is the nerve centre of e-commerce. Mistakes are costly, and the Federal Tax Administration (FTA) regularly audits online shops.
The VAT threshold: worldwide, not just Swiss
Any company with worldwide revenue above CHF 100,000 per year from non-exempt services must register for Swiss VAT. Crucial point: the threshold considers worldwide revenue, not only Swiss sales. A dropshipper who sells CHF 80,000 in Switzerland and CHF 30,000 in the EU therefore exceeds the threshold and must register with the FTA.
For deeper coverage, our Swiss VAT guide for freelancers details the registration process, and the Swiss VAT declaration practical guide explains how to complete returns.
2026 VAT rates
| Rate | Usage | E-commerce examples |
|---|---|---|
| 8.1% (standard) | Most goods and services | Electronics, clothing, cosmetics, decor, toys |
| 2.6% (reduced) | Food, medicines, books, newspapers | Online grocery, non-medicinal supplements, books |
| 3.8% (accommodation) | Hospitality only | Not applicable to pure e-commerce |
| 0% (exempt) | Exports | Deliveries outside Switzerland (with customs proof) |
Full details are available in our Swiss VAT rates 2026 guide.
Distance selling CH to EU: watch the trap
A Swiss merchant who ships a product to a French customer sells excluding Swiss VAT (export), but the product is taxed at import in France (French VAT + potential customs duties). Two options:
- DAP (Delivered At Place): the French customer pays French VAT and clearance fees on delivery. Degraded customer experience.
- DDP (Delivered Duty Paid): the Swiss merchant covers French VAT and duties via a tax representative or IOSS window. Smooth customer experience, but administrative complexity.
Since July 2021, the IOSS (Import One-Stop Shop) allows a non-EU merchant to collect EU VAT on shipments up to EUR 150, then remit it via a single portal. It's the recommended solution for Shopify stores targeting the European market.
B2C vs B2B: different rules
| Customer type | Location | VAT rule |
|---|---|---|
| Swiss individual | Switzerland | CH VAT 8.1% (or 2.6% depending on product) |
| Swiss company | Switzerland | CH VAT 8.1%, recoverable by the customer |
| EU individual | EU | CH export (0%) + EU VAT on import |
| EU company | EU | CH export (0%), customer reverse-charges EU VAT |
| US/non-EU individual | Outside EU | CH export (0%), no VAT collected |
Dropshipping in Switzerland: specific rules
Dropshipping (selling a product you don't stock, shipped directly by a supplier abroad) has exploded in Switzerland since 2019. But since then, legislation has been tightened to fight unfair competition.
The import allowance and its exception
Historically, any parcel imported into Switzerland with VAT below CHF 5 was not taxed (for administrative cost reasons). Concretely, this means an allowance on shipments up to:
- CHF 65 for products taxed at 8.1% (65 × 8.1% = CHF 5.27, so practical limit ~CHF 62)
- CHF 200 for products taxed at 2.6% (food, books)
A non-food parcel imported at CHF 50 from China thus went through without VAT or customs. That was the golden age of dropshipping.
The CHF 100,000 rule for foreign dropshippers (2019)
Since 1 January 2019, a foreign seller with annual revenue above CHF 100,000 from low-value shipments to Switzerland must register for Swiss VAT. They become the importer and must collect VAT on all shipments, even small ones. This rule targeted AliExpress, Wish and similar. It also applies to a Swiss dropshipper using a foreign white-label supplier, depending on the setup.
Practical case: Switzerland-based Shopify dropshipper, supplier in China
Let's take a concrete example. A Swiss merchant sells a product at CHF 50 incl. VAT through their Shopify store. Their Chinese supplier ships directly to the Swiss customer.
- If the merchant is registered for Swiss VAT (revenue > 100k): they invoice CHF 50 incl. VAT (46.25 excl. + 3.75 VAT) to the customer, and declare this VAT to the FTA. They can also reclaim import VAT if they are the official importer.
- If the merchant is not yet VAT-registered (revenue < 100k): they invoice CHF 50 without VAT. The customer may (depending on the setup) receive a separate customs invoice. Ambiguous situation, often tolerated below threshold but worth monitoring.
Who owes import VAT?
A key point often misunderstood: import VAT is owed by the official importer, listed on the customs declaration. This can be:
- The end customer (DAP case): they receive an invoice from the carrier (Swiss Post, DHL, FedEx) with VAT + clearance fees (often CHF 15 to 30).
- The dropshipping merchant (DDP case): they pay import VAT, pass it into their price, and offer a smooth experience to the customer.
The 2026 trend is clearly toward DDP, as Swiss consumers are tired of surprise fees at delivery. Shopify Markets and services like Passport, Zonos, Easyship automate this handling.
For more official information, see the Federal Office for Customs and Border Security (OFDF) and the Federal Tax Administration (FTA).
E-commerce invoices: automation and compliance
An online shop quickly generates hundreds of invoices per month. Manual invoicing isn't an option. The challenge is threefold: automate, respect Swiss legal obligations, and archive correctly.
Automatic post-order generation
Every paid order must trigger automatic issuance of an invoice (or a receipt equivalent to an invoice). E-commerce platforms offer either:
- Native templates (Shopify order confirmation email with PDF attachment)
- Dedicated apps (Sufio, Order Printer Pro on Shopify, WooCommerce PDF Invoices)
- Integration with external invoicing software via API or Zapier (recommended for Swiss compliance)
Mandatory information (CO art. 957b and VAT Act art. 26)
A Swiss e-commerce invoice must include:
- Full business name and address of the merchant
- UID number (format CHE-XXX.XXX.XXX) and VAT number if registered
- Customer name and address
- Unique sequential invoice number (legal requirement, no gaps)
- Issue date and delivery date if different
- Clear description of goods delivered (not just "product no. 1234")
- Price excl. VAT, VAT rate, VAT amount, price incl. VAT (or "VAT included" mention with rate)
- Currency (CHF, EUR, etc.)
- Payment terms (in B2B cases with deferred payment)
If you invoice B2B with deferred payment, the Swiss QR-invoice is strongly recommended (even expected).
Continuous numbering: the classic mistake
Many e-commerce merchants use the Shopify order number as the invoice number. This is a mistake. If a customer cancels an order and no invoice is issued, a "gap" appears in the sequence. The FTA requires uninterrupted numbering. Solution: issue a separate invoice number, managed by the invoicing software, at confirmed payment.
Electronic archiving: 10 years
The Code of Obligations (art. 958f) requires 10 years of preservation for all accounting documents, including electronic invoices. The conditions:
- Integrity (no modification possible after issuance)
- Durable readability (open formats: PDF/A recommended)
- Accessibility in case of audit
Invoicing software with compliant cloud archiving solves the question. Swiss SME accounting details all obligations.
Returns, refunds and credit notes
In Switzerland, unlike the EU, there is no legal 14-day right of withdrawal for B2C online sales. The Swiss consumer has no automatic right of return. But commercial practice has aligned with the European standard, and most shops offer 14 to 30 days of free returns.
When does EU law apply?
If you sell to EU consumers from your Swiss store, European law applies (Directive 2011/83/EU on consumer rights). You must therefore offer 14 days of withdrawal, with full reimbursement (product + outbound delivery fees). Caution: this applies as soon as you actively target the EU market (language, currency, explicit EU delivery).
Return policy: what to communicate
| Element | Recommendation |
|---|---|
| Duration | 14 days (EU minimum) to 30 days (premium standard) |
| Return fees | Your cost if product defective, otherwise customer (except EU) |
| Product condition | New, unused, original packaging |
| Refund | Within 14 days after return received |
| Refund method | Original payment method (mandatory in EU) |
Credit note vs corrective invoice
For a refund, you must issue a credit note that cancels all or part of the initial invoice. Rules:
- Separate or integrated numbering (but continuous)
- Clear reference to the original invoice
- "Credit note" mention
- Symmetrical VAT impact (if you collected CHF 3.75 VAT, you recover it)
Our dedicated guide on credit notes in Switzerland details the use cases.
Accounting impact
A credit note reduces revenue in the month of issuance (not retroactively on the sale month). For a merchant on the effective method, this also adjusts collected VAT in the relevant quarter's return. Under the net tax debt rate method (TDFN), same principle.
Deliveries and shipping fees: the VAT trap
Are shipping fees taxable?
Yes, as a general rule. Shipping fees invoiced to a Swiss customer are subject to the same VAT rate as the product transported. Examples:
- T-shirt CHF 40 + shipping CHF 8 = CHF 48 incl. VAT at 8.1%
- Book CHF 25 + shipping CHF 5 = CHF 30 incl. VAT at 2.6%
- Mixed basket (book + t-shirt): proportional allocation recommended
Displayed "free shipping": beware
If you display "free shipping" and bake the costs into the product price, VAT applies to the total price. No magic: free shipping is simply absorbed into the margin.
CH vs EU delivery: comparison table
| Destination | VAT on product | VAT on shipping | Customs |
|---|---|---|---|
| Switzerland | 8.1% or 2.6% | Same rate | No |
| EU (DAP, without IOSS) | 0% (CH export) | 0% | Yes, customer pays |
| EU (DDP, with IOSS) | EU VAT of destination country | EU VAT of destination country | Your cost |
| Non-EU (US, UK, Asia) | 0% (CH export) | 0% | Varies by country |
Direct import by the customer
If your end customer orders from abroad and you ship from Switzerland (classic export), customs on the recipient side is their problem. But communicate clearly: many EU customers don't know that "shipped from Switzerland" means VAT + clearance fees on their end. The IOSS/DDP option avoids these frictions.
Online payments: which solution to choose?
The PSP (Payment Service Provider) choice impacts fees, customer experience and accounting.
Stripe: the standard solution
Stripe covers cards (Visa, Mastercard, Amex), Apple Pay, Google Pay, and TWINT in Switzerland since 2023. Fees: 2.9% + CHF 0.30 per CH transaction, 3.4% for non-CH cards. Native Shopify/WooCommerce integration. Recommended for 90% of shops.
PayPal: essential but expensive
PayPal remains used by 25% of Swiss buyers, especially those over 40. Fees: 2.9% + CHF 0.55 for CH transactions, up to 4.4% international. More expensive than Stripe but needed to avoid losing sales.
TWINT: the Swiss reflex
TWINT (via Stripe, Datatrans or directly) is used by 60% of Swiss consumers. Fees: about 1.3% + CHF 0.25. Essential in 2026 for any merchant targeting the Swiss market.
QR-invoice: for B2B
If you sell to businesses with deferred payment (30 days, 60 days), the QR-invoice remains the Swiss standard. It's generated automatically from Tobill or dedicated e-commerce integrations. Essential for B2B orders where cards aren't used.
Fee comparison
| Solution | CH fees | EU/US fees | Payout delay |
|---|---|---|---|
| Stripe | 2.9% + CHF 0.30 | 3.4% + CHF 0.30 | 2 to 7 days |
| PayPal | 2.9% + CHF 0.55 | 4.4% + CHF 0.35 | Instant (on PayPal balance) |
| TWINT | ~1.3% + CHF 0.25 | N/A | 1 to 3 days |
| Datatrans / Wallee | 1.8 to 2.5% (negotiated) | 2.5 to 3% | 2 to 5 days |
| QR-invoice | 0% (bank cost) | N/A | On receipt (per terms) |
For international multi-currency sales, our multi-currency and international invoicing guide complements the topic.
Which tools to manage a Swiss e-commerce in 2026
The recommended stack for a Shopify or WooCommerce shop:
- E-commerce platform: Shopify (simplicity) or WooCommerce (flexibility)
- PSP: Stripe + TWINT + PayPal
- Swiss-compliant invoicing: Tobill to generate QR invoices, manage VAT, credit notes and archive 10 years. Shopify integration via Zapier or API to sync orders.
- Accounting: Bexio, Abacus, or export to fiduciary
- Customs management (if international): Easyship, Zonos or Shopify Markets
- Logistics tracking: 17track, AfterShip
Tobill integrates particularly well with merchants who want to separate Swiss-compliant invoicing (QR-invoice, 10-year archiving, legal mentions) from the standard Shopify checkout.
Swiss e-commerce FAQ
Do I have to register for VAT from the first online sale?
No. Registration is mandatory only if your annual worldwide revenue exceeds CHF 100,000. Below that, you can sell without VAT (but you cannot reclaim it on your purchases). You can register voluntarily if it benefits you (to reclaim VAT on expensive equipment, for example).
Can I sell online as an employee, as a side activity?
Yes, unless your employment contract says otherwise. You must declare the additional income to tax authorities. Up to around CHF 2,300/year, side income is often exempt from OASI on the secondary self-employed activity. Beyond that, mandatory affiliation with an OASI fund.
How do I handle VAT for dropshipping with a Chinese supplier?
Three cases. (1) Your revenue < 100k: no VAT registration obligation, but customs may tax parcels on entry. (2) Your revenue > 100k: mandatory registration, you become liable and can choose DAP or DDP. (3) DDP case recommended: you collect Swiss VAT from the customer and remit it to the FTA, with recovery of import VAT.
Are shipping fees subject to VAT?
Yes, at the same rate as the product transported. If a product is at 8.1%, shipping is too. For a mixed basket (8.1% + 2.6%), proportional allocation is recommended.
Must I accept returns in Switzerland?
Legally, no. There is no right of withdrawal for B2C online sales in Switzerland. But commercially, 14 to 30 days of free returns has become the standard. If you sell to EU customers, European law requires a minimum of 14 days.
Which VAT applies if I sell to a French customer from my Swiss shop?
Exports from Switzerland are exempt from Swiss VAT (0%). The product is taxed on import in France: French VAT 20% + possible customs duties + clearance fees. Either you let the customer pay on delivery (DAP, poor experience), or you use IOSS to collect French VAT upfront (DDP, smooth experience).
Does Shopify generate Swiss-compliant invoices?
No, not natively. Shopify sends an order confirmation email that resembles an invoice, but often lacks Swiss legal mentions (UID number, continuous numbering, VAT rates itemised). Apps fill the need (Sufio, Order Printer Pro), but for full compliance (B2B QR-invoice, 10-year archiving), integration with dedicated software like Tobill is recommended.
Must I declare my e-commerce sales in my usual VAT return?
Yes. All sales collected through your online shop (Stripe, PayPal, TWINT, QR-invoice) must be reported in your quarterly VAT return (or semi-annual depending on regime). Be careful to break down by rate (8.1%, 2.6%) and distinguish exports (0%) which open a right to deduction but don't generate collected VAT.
Where to find official texts on Swiss e-commerce?
The SECO (State Secretariat for Economic Affairs) publishes guides on online commerce and consumer protection. The FTA details VAT rules applicable to distance selling and dropshipping. The OFDF regulates imports and customs allowances.
Conclusion: selling online, an administrative trade as much as a commercial one
Launching a Shopify store or a dropshipping project takes a few hours technically. But the real challenge, in Switzerland, is administrative: respecting the CHF 100,000 worldwide VAT threshold, mastering the import allowance, issuing invoices compliant with the Code of Obligations, archiving 10 years, managing B2C/B2B returns differently by geography. Merchants who succeed over the long run are those who structure their invoicing, accounting and VAT from day one. Automating invoicing (Tobill + Shopify via API), delegating accounting to a fiduciary or dedicated software, and choosing the legal form adapted to volume — these are the three levers that let you focus on what truly matters: selling.