Choosing the Incoterm to indicate on the invoice is a fundamental commercial decision that determines the allocation of costs and risks between seller and buyer in an international transaction. The most commonly used Incoterms for shipments between Italy and Switzerland are: EXW (Ex Works): the seller makes the goods available at their premises, all subsequent costs and risks are borne by the buyer; FCA (Free Carrier): the seller delivers the goods to the carrier nominated by the buyer; DAP (Delivered at Place): the seller handles transport to the place of destination, excluding import customs clearance; DDP (Delivered Duty Paid): the seller handles everything, including transport, customs clearance and payment of duties in the country of destination. Please note: the choice of Incoterm has direct tax implications. For example, if an Italian seller uses DDP for a delivery to Switzerland, they will need to register for VAT in Switzerland and pay import VAT, in addition to bearing customs costs. For Italy-Switzerland shipments, Franzosini generally recommends DAP or FCA, which allow the Swiss consignee to manage customs clearance through their trusted forwarder, maintaining control over costs and customs documentation. It is essential that the Incoterm indicated on the invoice is consistent with the contractual terms of sale and the letter of credit, if applicable. Inconsistencies can cause payment delays and disputes.