How to Register for VAT as a Freelancer in St.Gallen

Your complete 2024 guide to MWST registration. Understand the CHF 100,000 threshold, 30-day deadline, filing methods, and step-by-step registration process.

Swiss Business Office in St.Gallen

Crossing CHF 100,000 in annual revenue is a major milestone for any St.Gallen freelancer. But with that achievement comes a new responsibility: registering for Swiss Value Added Tax (known locally as MWST, TVA, or IVA).

If you're confused about whether you need to register, how the process works, or what happens if you miss the deadline, you're in the right place. This guide walks you through everything you need to know about VAT registration in St.Gallen—with accurate numbers, current regulations, and practical steps you can follow today.

VAT Fundamentals

Understanding Swiss VAT (MWST) and When You Must Register

Swiss Value Added Tax is a consumption tax applied to most goods and services. As a freelancer, you become a tax collector: you charge VAT to your clients and pass it on to the Federal Tax Administration (FTA).

The 30-Day Rule You Can't Ignore

Many freelancers miss this crucial detail: you must inform the FTA within 30 days of when exceeding the threshold becomes foreseeable. This doesn't mean after you've hit CHF 100,000—it means as soon as you can reasonably predict you'll reach it.

Missing this deadline can result in:

  • Backdated VAT liability (you may owe VAT retroactively)
  • Interest charges on unpaid amounts
  • Potential penalties for non-compliance
  • Requirement to register anyway, with added complications

The good news? Once you notify the FTA, your VAT liability doesn't start retroactively—it begins from the date you inform them.

Current VAT Rates in Switzerland (2024)

Switzerland uses three VAT rates depending on the type of goods or services. Most St.Gallen freelancers will charge the standard rate.

📝 MWST (German)
🇫🇷 TVA (French)
🇮🇹 IVA (Italian)
⚠️ Never 'VAT'
📊
Standard Rate: 8.1%

Applies to most services freelancers provide—consulting, design, development, marketing

🍎
Reduced Rate: 2.6%

Food, books, medicines, newspapers

🏨
Accommodation Rate: 3.8%

Hotels and lodging services

🇨🇭
Always Use MWST/TVA/IVA

Never use 'VAT' on Swiss documents—use the correct local term

Voluntary Registration

Should You Register Voluntarily?

Not quite at CHF 100,000 yet? You can still register voluntarily, and there are solid reasons to consider it.

Benefits

Why Register Before CHF 100,000

Voluntary registration can provide strategic advantages for growing freelancers

  • Professional credibility: A MWST number signals you run a legitimate, established business
  • Input VAT deduction: Reclaim VAT on business expenses—office supplies, equipment, software, professional services
  • Competitive positioning: Some clients specifically seek VAT-registered freelancers
  • Cash savings: For businesses with significant expenses, deductions can add up to thousands of francs annually
Magic Heidi Invoice on Mobile
Considerations

Drawbacks to Consider

Voluntary registration isn't right for everyone—understand the tradeoffs

  • Administrative burden: Quarterly VAT returns require meticulous record-keeping
  • Cash flow impact: You collect VAT but must remit it quarterly, affecting working capital
  • Price sensitivity: Adding 8.1% might make you less competitive for private consumers
  • Ongoing compliance: Once registered, you can't easily deregister
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Filing Methods

Choosing Your VAT Filing Method

Switzerland offers three VAT accounting methods. Your choice affects both your administrative workload and potential tax optimization.

Most St.Gallen freelancers start with the Effective Method to maximize deductions, then potentially switch to Net Tax Rate after establishing a track record.

St.Gallen-Specific Requirements

Beyond federal VAT registration, St.Gallen freelancers face additional cantonal obligations that must be completed.

🏛️ Handelsregister
💳 SVA St.Gallen
🆔 UID Number
🇨🇭 CHE Format
📋
Commercial Register

Mandatory if turnover exceeds CHF 100,000. Contact: Handelsregisteramt St.Gallen

💼
Self-Employment Status

Confirm status with SVA St.Gallen before VAT registration

🔢
UID Number

Swiss business identification number (CHE-123.456.789 format)

📞
Contact Information

sg.ch/wirtschaft-arbeit/handelsregister • +41 58 229 34 56

Registration Process

Step-by-Step VAT Registration

Ready to register? Here's exactly what to do, from gathering documents to receiving your MWST number.

Business Paperwork and Documents

Step 1: Gather Required Documents

Before starting your application, compile:

  • Personal identification: ID card or passport, date of birth, Swiss social security number (found on your AHV/IV certificate or health insurance card)
  • Business details: Business name, St.Gallen address, description of activities, business start date
  • Financial projections: Estimated annual turnover for the next 12 months
  • UID number: If you already have one; if not, you can apply simultaneously
  • Bank account information: Swiss IBAN for VAT settlements

Step 2: Register via EasyGov.swiss

Switzerland's centralized business portal makes registration straightforward.

  1. Go to www.easygov.swiss
  2. Create an account or log in with SwissID
  3. Navigate to "Register for VAT" (MWST-Anmeldung)
  4. Complete the online questionnaire
  5. Upload supporting documents
  6. Submit your application

The portal walks you through each field with explanations in German, French, or Italian.

Step 3: Complete the FTA Questionnaire

The FTA form asks detailed questions about:

  • Your business activities (be specific—"graphic design services for corporate clients" rather than just "design")
  • Projected monthly revenue breakdown
  • Whether you'll invoice international clients
  • Your chosen VAT accounting method
  • Details about any business partnerships or subsidiaries

Be accurate: Estimates don't need to be perfect, but intentionally low projections to delay registration can backfire.

Step 4: Await FTA Review

The Federal Tax Administration processes applications quickly:

  • Initial review: Usually within 3-5 business days
  • Clarification requests: If needed, FTA contacts you for additional information
  • Approval letter: Typically arrives within 2-3 weeks by mail

You'll receive your official MWST number, which you must display on all invoices from your registration date forward.

Step 5: Set Up Your Accounting System

Before your first VAT-liable invoice, establish proper systems:

  • Accounting software: Consider solutions designed for Swiss VAT like Magic Heidi, which automatically calculates MWST, generates compliant invoices, and prepares quarterly returns
  • Document storage: Maintain digital and physical records for 10 years (legal requirement)
  • Invoice templates: Update templates to include your MWST number and correct rate
  • Expense tracking: Implement systems to capture VAT on all business purchases
Ongoing Compliance

Your Ongoing VAT Obligations

Registration is just the beginning. Here's what you must do quarterly to stay compliant.

Common Mistakes

Mistakes to Avoid

Learn from others' errors—here are the most common VAT registration and compliance mistakes St.Gallen freelancers make.

MistakeWhy It's WrongWhat To Do Instead
Using 'VAT' terminologyIncorrect for Swiss documentsAlways use MWST/TVA/IVA on official forms and invoices
Mixing personal & businessCan't deduct full VAT on shared itemsTrack business-use percentage for all shared expenses
Missing 30-day deadlineTriggers retroactive liability and penaltiesRegister immediately when you project hitting CHF 100k
Wrong rate applicationMost services are 8.1%, not 2.6% or 3.8%Verify your industry rate in FTA guidance
Poor documentationNo receipt = no VAT deductionKeep all receipts showing VAT separately for 10 years
Automation Tools

Tools to Simplify VAT Management

Manual VAT tracking is tedious and error-prone. Modern accounting software built for Swiss businesses automates most of the work—saving 3-4 hours per quarter.

Magic Heidi Analytics Dashboard
FAQ

Frequently Asked Questions

What happens if I exceed CHF 100,000 unexpectedly?

Inform the FTA immediately. As long as you notify them within 30 days of realizing you'll exceed the threshold, you avoid retroactive liability.

Can I deregister if my revenue drops below CHF 100,000?

Not automatically. You must apply for deregistration and demonstrate that your revenue will remain below threshold for the foreseeable future. The FTA will review and decide.

Do I charge MWST to private individuals?

Yes, if you're registered. VAT applies to all sales regardless of whether the buyer is a business or individual. Private clients simply can't reclaim it.

What if I make a mistake on my VAT return?

File a corrected return as soon as you discover the error. The FTA is more lenient with self-reported corrections than errors they uncover during audits.

How long does registration remain valid?

Indefinitely, as long as you continue operating and filing returns. You're registered until you formally deregister.

Can I switch VAT methods later?

Yes, but you must notify the FTA before the start of a new accounting period. Switching between methods requires FTA approval and justification.

Next Steps

Your Action Checklist

VAT registration might seem daunting, but broken into steps, it's manageable—even for non-accountants.

Most St.Gallen freelancers successfully manage their own VAT registration and returns, especially with proper software support. However, if your situation is complex—multiple revenue streams, international clients, partnership structures—consulting a Swiss tax advisor for the initial setup is a worthwhile investment.

The key is acting proactively. Don't wait until you're past the threshold and scrambling to catch up. Register properly, maintain good records, and VAT compliance becomes just another routine part of running your successful St.Gallen freelance business.

Ready to Simplify Your VAT Management?

Magic Heidi handles MWST calculations, invoice formatting, and quarterly returns automatically—giving you more time to focus on your actual work.

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