VAT GUIDE IN SWITZERLAND
SWISS VAT GUIDE FOR BUSINESSES
VAT in Switzerland is a federal consumption tax levied on the supply of goods and services, as well as on the importation of goods into the country. The Swiss VAT system is governed by the Federal Act on Value Added Tax and is administered by the Federal Tax Administration (FTA).
Menu
VAT Rates
Who Needs to Register for VAT?
Taxable persons in Switzerland are any individual or entity carrying out a business in Switzerland, regardless of legal form or purpose. This includes those who independently conduct professional or commercial activities regularly and in their own name.
Non-established businesses must register for Swiss VAT if they are liable to account for VAT on supplies in Switzerland. Non-established businesses with global turnover over CHF 100,000 must register from the first franc of taxable turnover in Switzerland.
Low-value goods: Non-established entities supplying low-value goods totaling CHF 100,000 or more annually to Swiss customers must register, import goods, and charge Swiss VAT.
Obligations after registration: Non-established businesses must charge VAT on all taxable supplies in Switzerland and register under a rest-of-world VAT number covering all Swiss-related transactions.
Tax representatives: Generally, non-established businesses must appoint a Swiss tax representative, who does not assume VAT liability but acts as a contact point. From January 2025, this requirement may be waived if other procedural obligations are met.
VAT Obligations
VAT invoices
A Swiss taxable person is generally required to issue a VAT invoice for all taxable supplies, including exports. A VAT invoice is also essential for non-established businesses to claim refunds under the VAT refund scheme.
Simplified VAT invoices
Receipts generated by automatic cash register systems qualify as simplified VAT invoices and are not required to include the recipient’s details, as long as the total amount shown does not exceed CHF 400.
Records
Records such as VAT returns, invoices, agreements, and accounting documents must be kept.It must comply fully with Swiss bookkeeping and archiving laws and be immediately accessible and readable.
Records are generally kept in Switzerland but may be stored abroad if all Swiss rules are met.
Retention period is 16 years for most VAT records, and 26 years for documents related to immovable property. Additional years may apply if legal proceedings are ongoing.
Electronic archiving is permitted but must meet strict requirements for authenticity, origin, and integrity.
VAT Deadlines
Returns
VAT returns are generally submitted quarterly.
Businesses using the net tax rate method file returns half-yearly.
Those with consistently more input tax than output tax can apply to file monthly.
Businesses with annual turnover up to CHF 5,005,000 may apply to file annually.
Payments
Returns and payments are due 60 days after the end of the reporting period.
VAT payments must be made by bank transfer in Swiss francs (CHF).
VAT Refund
Non-established businesses not registered for Swiss VAT can recover input VAT if they have not made supplies in Switzerland or Liechtenstein.
Refunds are granted on a reciprocity basis, meaning the claimant’s home country must also refund Swiss businesses.
Eligible countries include many in Europe, North America, Asia, and others (contact us for the list).
Refund claims must be submitted by June 30 following the year the VAT was incurred.
Claims must be in French, German, or Italian and include appointment of a Swiss tax representative.
The claim period covers one year with a minimum claim amount of CHF 500.
Certain VAT on exempt or non-taxable supplies is not refundable.
Required documents include completed refund forms, original VAT invoices, proof of payment (if requested), and a certificate proving the claimant’s business status from their home tax authority.
Penalties for non-compliance
Late registration
Taxable persons must register within 30 days of becoming liable (or 60 days for acquisition tax). Fines up to CHF 10,000 may apply depending on circumstances.
Late payment
Interest at 4.75% per year may be charged on late VAT payments. One-off late payment penalties can be up to CHF 10,000.
Errors
Willful or negligent incorrect reporting that reduces tax owed can result in fines up to CHF 400,000.
If input tax deductions are incorrectly claimed, fines may reach CHF 800,000.
Incorrect but truthful declarations for tax purposes can lead to fines up to CHF 200,000 (negligence fines up to CHF 20,000).
No specific penalties exist for late or failure to notify VAT registration changes, but indirect penalties may apply.
Fraud
Intentional underreporting or misuse can result in fines up to CHF 800,000, possibly doubled if the tax advantage exceeds the penalty amount.
Common VAT Terms
- VAT — Mehrwertsteuer (MwSt)
- Taxable person — Steuerpflichtiger
- Taxable supply — steuerbare Lieferung
- Input tax — Vorsteuer
- Output tax — Umsatzsteuer
- VAT return — Mehrwertsteuererklärung
- Tax period — Steuerperiode
- Taxable turnover — steuerbarer Umsatz
- Reverse charge — Umkehrung der Steuerschuldnerschaft
- Tax exemption — Steuerbefreiung
- VAT registration — Mehrwertsteuerregistrierung
- Tax representative — Steuervertreter
- Invoice — Rechnung
- Simplified invoice — vereinfachte Rechnung
- Record keeping — Buchführung
- Tax refund — Steuererstattung
- Tax threshold — Steuergrenze
- Penalty — Strafe
- Interest — Zinsen
- Intrastat — Intrastat
- Import VAT — Einfuhrumsatzsteuer
- Export — Export
- Exempt supplies — steuerfreie Leistungen
