Cross-border commuters & company cars
With one of the lowest unemployment rates in Europe and attractive wages, Switzerland remains an extremely attractive place to work. In 2020, the number of people working in Switzerland who reside in a neighboring country was 343,000. Some of these cross-border commuters use a company car registered in Switzerland in the name of their employer. Below we answer 3 important questions about cross-border commuters and company cars.
1. can an employee resident in the EU continue to use their vehicle registered in Switzerland?
Within Switzerland, cross-border commuters can continue to use their company car registered in Switzerland without restriction. In the EU, only uninterrupted journeys between the place of work and the place of residence are permitted for private purposes. In addition, journeys for the performance of a task specified in the employment contract are permitted.
2. what must be done if a cross-border commuter has to use his company car for private purposes within the EU?
It is possible to submit an application for “release for free circulation” (often also referred to as “customs clearance”) to the customs authorities in the employee’s country of residence so that they can use their company vehicle for private journeys within the EU completely legally. However, there are costs involved, such as VAT in the country of residence, which is calculated on the basis of the market value of the vehicle. In addition, an import duty of 10% (also based on the market value of the vehicle) is levied if the car was produced outside the EU.
Best cross-border commuter advice incl. net salary calculation
> Free and non-binding advice since 2003
> Net wage calculation & practical tax tips
> Best and cheapest health insurance for cross-border commuters
> Help with choosing the right bank account
> Help with registering with the tax office and much more
3. when I bought the vehicle in Switzerland, I already paid the Swiss VAT, and now I am supposed to pay the VAT in another country for the second time. Can I have one of the two refunded?
Yes, in principle it is possible to have the VAT of the cross-border commuter’s country of residence refunded. However, the vehicle must remain registered in Switzerland. However, implementation is at the discretion of the employee’s country of residence. Although this is EU law, the countries themselves are responsible for its implementation. And so there are indeed major differences depending on the country. So far, it is possible to reclaim VAT in Germany, Austria and France.
Any questions?
On the homepage of “Your Europe” you will find further useful information and tips on the subject of cross-border commuters and company cars.
The following link will take you to the national contacts for Austria – “National contacts – All about cars”. Here you will find the contact details of the Federal Ministry for Transport, Innovation and Technology (BMVIT) where you can register a company vehicle.
