Financial Crime World

Liechtenstein Payment Processors Must Comply with Stricter Regulatory Requirements

The Principality of Liechtenstein has implemented stricter regulations for payment processors to ensure transparency and security in financial transactions. This article outlines the new rules, their implications, and what businesses need to do to comply.

Stricter Guidelines for Payment Processors

Payment processors in Liechtenstein must now adhere to strict guidelines when issuing invoices for business transactions. The following details are required:

  • Date of issue
  • Unique sequential number
  • Supplier’s VAT identification number
  • Customer’s full name and address
  • Description of goods and services
  • VAT rate applied

These invoices must be stored by businesses for at least 10 years.

Electronic Invoicing (e-Invoicing)

The Liechtenstein government has encouraged the use of electronic invoicing (e-invoicing) for B2B, B2C, and B2G transactions. Businesses are required to ensure that e-invoices meet the same legal requirements as paper invoices.

VAT Compliance in Liechtenstein

Businesses operating in Liechtenstein must comply with Value-Added Tax (VAT) regulations. The standard VAT rate is 7.7%, while a reduced rate of 2.5% applies to certain goods and services, and a special rate of 3.7% is applicable to the hotel industry.

Business Registration for VAT

Businesses must register for VAT if their annual turnover exceeds CHF 100,000.

Implications of Non-Compliance

Non-compliant businesses can face serious penalties, including fines and damage to reputation. To avoid these consequences, payment processors must ensure that they are compliant with all regulatory requirements.

Automating Real-Time Reporting and Tax Compliance

Businesses looking to automate real-time reporting and tax compliance for Liechtenstein should consider seeking professional advice from experienced consultants who specialize in the country’s regulatory landscape. With the right guidance, businesses can stay ahead of the curve and ensure seamless financial operations.