VAT compliance and reporting rules in Switzerland 2024
Below is summary of the major rules provided under Swiss VAT rules (Mehrwertsteuergesetz (MWST) VAT law. MWST-Infos and MWST-Brancheninfos provide supplementary guidance). Check our country VAT guides for other jurisdictions.
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Switzerland VAT country guide
| Highlights | Local term | Mehrwertsteuer (MWST) |
| VAT Rates - standard | 8.1% (reverts to 7.7% 2030) | |
| Rates news | Temporary VAT rise to 8.1% January 2024 | |
| VAT Rates - reduced | 3.8%; 2.6%; 0% | |
| VAT number format | CHE 123.456.789 | |
| Registration threshold | Resident: CHF 100,000 pa; Non-resident: nil if worldwide sales exceed CHF 100,000 pa; except low value ecommerce goods (not exceeding CHF 65) with sales in Switzerland CHF 100,000 pa; | |
| VAT Group | Yes for residents or branches of non-residents | |
| VAT recovery foreign businesses | Yes, but requires reciprocity agreement for non-EU businesses | |
| Fiscal Representative | Required for non-residents | |
| Currency | Franc, CHF | |
| Administration | Introduction | VAT was introduced in January 2018. Switzerland is not a member of the European Union |
| VAT laws | Mehrwertsteuergesetz (MWST) VAT law. MWST-Infos and MWST-Brancheninfos provide supplementary guidance. Note: Switzerland is not a member of the EU although its VAT laws often shadow the EU VAT Directives and customs rules. Switzerland is a member of Europe EFTA | |
| Tax Authorities | Eidgenössische Steuerverwaltung (Federal Tax Administration) | |
| VAT Rates | Standard rate | 8.1% (since 1 Jan 2024) |
| Rates news | Temporary VAT rise to 8.1% January 2024 | |
| Reduced rates | 3.6%: accommodation. 2.6%: basic foodstuffs; books and newspapers (including digital equivalent); water; medical and agricultural goods | |
| Zero-rated | Exports; services around import and export of goods; international flights | |
| Exempt | Education; financial services; public postal services; hospital and medical services; betting and gaming; certain cost sharing arrangements; cultural event admission; immovable property | |
| Scope of VAT | Scope of VAT | Provision of domestic taxable goods and services; receipt of services or certain goods via the reverse charge; imports; imported sales of goods and electronic services to consumers (see distance selling section) |
| Time of supply | Goods & Services (general rule) | Earlier of issuing invoice or payment for taxable service. This includes prepayments. For imported services, at the time of payment. |
| Reverse Charge | Earlier of issuing invoice or payment for reverse charge supply | |
| Continuous Services | No specific rules, so should follow regular time of supply rules | |
| Imports | Date of clearance into Switzerland through customs | |
| Goods on approval and return | No specific rules, so should follow regular time of supply rules | |
| Registration | VAT registration threshold | Resident: CHF 100,000 pa; Non-resident: nil if worldwide sales exceed CHF 100,000 pa; except low value ecommerce goods (not exceeding CHF 65) with sales in Switzerland CHF 100,000 pa; Non-residents providing services exclusively via reverse charge need not VAT register |
| Voluntary VAT registration | Yes, permitted | |
| VAT number format | CHE 123.456.789 | |
| VAT Group | Yes, voluntary for residents and branches of non-residents under common economic, management or commercial strategic control. All members jointly and severally liable to each others VAT.Single return for whole group. | |
| Non-residents | Similar to resident companies, except VATthreshold includes worldwide revenues. Must also appoint non-liable fiscal representative | |
| Fiscal Representative | Required for non-residents applying for a VAT number. A fiscal representative does not require official certification and is not held jointly and severally liable for their client's VAT | |
| Digital Services | Supplies to non-taxable customers of electronic, telecoms are subject to Swiss VAT where foreign provider. This requires a Swiss VAT registration if global revenues about CHF 100,000. Requires a fiscal representative who is not liable for any VAT | |
| Pre VAT registration costs | Generally not recoverable, although may be limited circumstances | |
| VAT Invoices | Issuance | VAT is due to be declared in tax return of period of supply or payment, so should be issued by 60th day following reporting period end. Not required for export sales. |
| Content | Vendor name, address VAT / tax number; date of transaction; name and address of customer; description of goods and services; consideration; VAT amount and/or rate used to enable a calculation to be made | |
| E-invoices | Permitted with controls over creation and issueance, plus secuity and integrity | |
| Simplified invoices | If not exceeding CHF 400. Customer details may be dropped from regular VAT invoice requirements | |
| Self-billing | Permitted without requirements. Although a written agreement between seller and buyer is good practise. | |
| Retention of invoices | 10 years. They should be immediately availble for inspection by the Swiss tax authorities which means for most businesses they should be kept in Switzerland | |
| FX rules | No restrictions of quoting major currencies. The rate used need not be discolsed on the invoice. However, for the return, the official daily rate should be used | |
| Invoice corrections | Credit or debit notes with reference to original invoice may be applied | |
| Compliance | Right to deduct | Excluded: business gifts not exceeding CHF 500; non-business related expenditure; spend related to exempt activities |
| Call-off stock | VAT registration exemption for non-residents not available on importation if customer unknown. Import VAT relief is available on imported consignment stock transfers to a Swiss customer by a non-residents. This is treated as outside the scope of Swiss VAT for consignor and reverse charge by consignee. For consignment basement sales, the VAT is due at import but the sale of the goods to the consignee does not happen until there is a sale to the final customer. | |
| Reverse Charge - B2B | B2B or B2C services where non-resident below VAT registration threshold. Consumer only liable to report and register for VAT is there reverse charge supplies pass CHF 10,000. | |
| Cash discounts | No credit note or new invoice required; adjustment through the VAT return | |
| Bad debt relief | Limited definition, but may reclaim via VAT return once written off fully in accounting ledgers | |
| Import VAT deferment | Imports not exceeding CHF 75 are VAT exempt. Permitted under Centralised Billing Procedure which must be applied for for regular importers. Delays VAT payment by up to 60 days. Does require cash deposit or Swiss bank guarantee | |
| VAT warehouse | No VAT warehousing. Customs bonded warehouses with customs duties and VAT suspension. | |
| Supply & install | Treated as local supply of goods and therefore liable to local VAT charge. If a non-resident is the supplier, then reverse charge to customer only if non-resident is below the Swiss VAT registration threshold | |
| Use and enjoyment services | Not adopted in Switzerland | |
| Capital goods adjustment period | Movable property: five years. Immovable property: 20 years | |
| Non-residents VAT recovery | Requires reciproicty agreement between Switzerland and country of residency of business. Requires the appointment of a Swiss VAT fiscal representative. One claim per annum permitted by 30 Jun of following year with original invoices, and must exceed CHF 500 | |
| VAT on Digital Services | Swiss VAT on digital services | |
| Live events | ||
| Distance selling threshold for goods | Imports are subject to import VAT, payable by the Swiss customer. Non-resident sellers with turnover above CHF must Swiss VAT register, charge and remit the VAT collected | |
| Cash accounting scheme | N/a | |
| VAT registered cash tills | N/a | |
| Statute of limitations | Five years after the end of the accounting period of the transaction(s) or returns | |
| Other | The Princeplaility of Liechtenstein has formed a VAT union with Switzerland, which administers compliance on its behalf. Permitted net rate regime for small businesses (less than CHF 5.02m turnover) on application. Filings on bi-annual | |
| VAT Returns | Frequency | Quarterly. Businesses with regular credit position may apply for monthly filings. |
| Filing method | Electronic | |
| Deadlines (inc payments) | Filings and payments due 60 days after reporting quarter end | |
| VAT credits | Repayable within 90 days of the return being submitted. Or interest due | |
| Corrections | Corrective VAT returns within five years of the end of the year of filing.Through next return or annual finalisation return | |
| Non-residents | No major variations from residents. Fiscal representative required | |
| Other filings | None | |
| SAF-T | N/a | |
| Penalties & interest | Late filings or payments will result in first warning and then assessment. 4% interest charge on late payments. Errors in reporting can result in fines up to CHF 800,000 where fraud. | |
| B2C Distance Selling returns | N/a. Registration required by non-resident if global income above CHF 100,000 |
