Switzerland VAT guide
Switzerland VAT guide for businesses
Value Added Tax (VAT) in Switzerland was introduced in 1995. Switzerland is not part of the European Union, however it operates with a very similar system of VAT. In Switzerland, the VAT is also known as Mehrwertsteuer (MWST), Taxe sur la valeur ajoutée (TVA) or Imposta sul valore aggiunto (IVA).
The official administrative languages in Switzerland are German, French and Italian depending on which Canton/County your are in. Administrative correspondence must be in the German language.
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What is the VAT rate in Switzerland?
8.1%
From 1 January 2024
Reduced VAT rate: 2.6%
Applies to certain everyday consumer goods such as foodstuffs, non-alcoholic beverages, books, newspapers, magazines, medicines and tickets for certain sports and cultural events.
Special accommodation VAT rate: 3.8%
Hotel accommodation (including breakfast). For further information is available on the Swiss Federal Tax Administration ESTV website.
Requirement to register for VAT
All companies who are taxable must register online within 30 days of the commencement of their tax liability. The Swiss VAT registration threshold for foreign companies is CHF 100,000 in turnover annually.
The following types of companies are required to register for VAT in Switzerland:
- Companies dealing with the importation of goods and products into Switzerland
- Buying and selling goods within Swiss territory
- Buying and selling goods to Swiss consumers on the internet
- Storing goods and products in Swiss warehouses
- Organising events and shows at which the customers pay for a ticket
If the company is a Swiss-established entity, it does not need to appoint a fiscal representative
If the company is a non-established entity, the business needs to appoint a fiscal representative, who takes responsibility for the submission of the tax returns and the payment of VAT. However, he/she is not liable for the tax payable.
The UID (VAT number) as well as further company details are available through the UID register website. Commercial details such as Business name, Enterprise number, Legal status and Legal seat can be found on the Commercial register website.
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Invoicing requirements
According to Article 26. Federal Act on Value Added Tax, the invoice must clearly include the following elements:
- The name and the location of the supplier in the form in which they presents themselves in business transactions, a note that they are registered as a taxable person and the number under which they are entered in the Register of Taxable Persons
- The name and location of the recipient of the supply in the form in which they presents themselves in business transactions
- The date or period of the provision of the supply in the event that it differs from the invoice date
- The nature, object and extent of the supply
- The consideration for the supply
- The applicable tax rate and the tax amount payable on the consideration
- If the consideration includes the tax, details of the applicable tax rate suffice
- If the invoice is issued in another currency than CHF, it is not required to indicate the VAT additionally in CHF and/or to show the exchange rate on the invoice.
VAT filing frequency and deadlines
Swiss VAT returns must be filed within 60 days after the end of the taxable period e.g. the filing deadline (Einreichungsfrist) of the VAT return. A Zero declarations / Nil VAT Return needs to be submitted even if there are no reportable transactions performed in the respective period.
In the case of high reclaimable VAT amount, the Company can submit VAT returns on a monthly basis (a written request should be sent to the Federal Tax Authority).
A filing extension for Swiss VAT returns can be obtained by downloading a form from the website of the Swiss Federal Tax Authority if no e-filing access is needed or via the e-filing system if the company has an e-filing registration.
The extension prolongs the filing deadline by 3 months calculated from the original filing deadline. The filing extension does not prolong the payment deadline.
Payable VAT Position
The payment has to be made within 60 days after the end of the taxable period. A 4% payment interest rate is levied on every company not fulfilling their VAT liability by the original payment deadline. The payment has to be arranged if the amount exceeds CHF 100. If the company cannot arrange the submission on-time it is strongly recommended that the company pays the approximate amount to avoid the late payment interest.
Reclaimable VAT Position
In the case of a reclaimable VAT balance, the Swiss Tax Authority will pay the amount 60 days after the filing date of the VAT return if they have the bank details of the Company.
Agents and fiscal representatives
Swiss-established entities do not need to appoint a fiscal representative, however non-established businesses need to appoint a fiscal representative, who takes responsibility for the submission of the tax returns and the payment of VAT. However, he/she is not liable for the tax payable.
Submission
A VAT return can only be submitted via an e-filing form on the website of the Swiss Federal Tax Authority. An online form can be filed electronically via the website of the Swiss Tax Authority before the submission deadline of the VAT return.
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