Purchase Tax Switzerland: How Freelancers Declare Swiss VAT on Foreign Services

The purchase tax (Bezugsteuer) is the Swiss VAT on services you receive from foreign providers. Instead of the foreign supplier showing Swiss VAT on their invoice, you declare the tax yourself and pay it to the ESTV (Swiss Federal Tax Administration) — this is the reverse charge procedure. The standard rate is 8.1%, and from CHF 10,000 in annual purchase volume, self-declaration becomes mandatory. Even if you are not VAT-registered, you can become subject to purchase tax.

Imagine you subscribe to Adobe Creative Cloud for CHF 72.48 per month, book Canva Pro for CHF 14.99, and hire a Polish developer for CHF 18,000. What do these three expenses have in common? Swiss VAT applies to all of them — but not on the supplier's invoice. You must declare the tax yourself. That is the purchase tax (Bezugsteuer), and it affects far more freelancers than most people realize.

In this guide, I explain what the Swiss purchase tax is, when it applies to you, how to declare it in figure 381 of your VAT return, and when you can recover the amount as input tax. With concrete CHF amounts, real-world examples, and no legal jargon.

Key Takeaways

• The purchase tax is 8.1% (standard rate) on services from foreign providers not registered for VAT in Switzerland.
• From CHF 10,000 in annual purchase volume, declaration becomes mandatory — even for businesses not registered for VAT.
• Declaration goes in figure 381 of the VAT return; the tax is simultaneously owed and deducted as input tax (for VAT-registered businesses).
• If you are not VAT-registered, you must pay the 8.1% but cannot recover it as input tax — this can quickly cost CHF 972 or more per year.
• Physical goods from abroad do not fall under purchase tax but under import tax (collected by the BAZG at customs).

What is the Swiss purchase tax and why does it affect every freelancer?

The purchase tax (Bezugsteuer) is the Swiss VAT that applies when you receive services from foreign companies. The term sounds complicated, but the principle is simple: when a foreign company provides a service to a Swiss customer and is not registered for VAT in Switzerland, the Swiss recipient must declare and pay the VAT themselves.

This is the so-called reverse charge procedure: the foreign provider issues their invoice without Swiss VAT, and the Swiss recipient calculates the Swiss VAT on the net amount and declares it in their VAT return.

The legal basis is found in Art. 45–49 MWSTG (Mehrwertsteuergesetz — Swiss VAT Act), available on Fedlex. The ESTV describes the practice on their purchase tax page.

Why does this affect practically every freelancer? Because almost every self-employed person today uses digital tools from abroad: Adobe Creative Cloud (USA), Canva (Australia), GitHub Copilot (USA), Notion (USA), Figma (USA), AWS (USA). The list is long, and most of these providers are not registered for VAT in Switzerland. Every franc you spend on them is potentially subject to purchase tax.

Anyone who ignores the purchase tax risks retroactive claims from the ESTV including interest on arrears. The ESTV can demand payments from previous years if they discover them during an audit. On an overlooked amount of CHF 5,000 over several years, CHF 500 or more in interest and penalties can quickly accumulate.

For most VAT-registered freelancers, however, the purchase tax is not a real cost issue but a declaration obligation: you declare the tax in figure 381 and deduct it as input tax in figure 400 at the same time. It remains a zero-sum game. But if you are not VAT-registered and still become subject to purchase tax, you pay the 8.1% out of your own pocket. That is why all self-employed people — whether VAT-registered or not — should understand how the purchase tax works.

We have written up the entire VAT system for self-employed people in our VAT guide for freelancers, which covers all the basics from registration to filing.

When do you become subject to purchase tax? The CHF 10,000 threshold

The purchase tax obligation kicks in at a purchase volume of CHF 10,000 per year for services from companies based abroad that are not registered for VAT in Switzerland. Below this threshold, nothing happens — you do not need to declare these purchases or pay any tax.

Important: this CHF 10,000 threshold applies to all foreign services combined, not per provider. If you spend CHF 6,000 on Adobe and CHF 5,000 on AWS, you are at CHF 11,000 combined and thus above the threshold.

Here is a particularity that is often overlooked: the CHF 10,000 threshold also applies to businesses that are not VAT-registered. So if your revenue is below the CHF 100,000 threshold and you do not have a VAT number, you can still become subject to purchase tax as soon as you purchase more than CHF 10,000 per year in foreign services. This primarily affects freelancers who work with expensive cloud services or foreign subcontractors but remain below the VAT threshold.

If you are above the threshold and need to register for VAT with the ESTV, the purchase tax becomes part of your regular VAT return. Anyone who registers voluntarily (possible from the first franc of revenue) can also declare the purchase tax correctly and deduct it as input tax at the same time.

What counts toward the CHF 10,000 threshold?

The threshold includes all services from foreign providers not registered for VAT in Switzerland:

• Software subscriptions from abroad (Adobe, Canva, Figma, Notion)
• Cloud hosting (AWS, Google Cloud, Azure — when the provider is based abroad)
• AI tools and API calls (OpenAI, GitHub Copilot)
• Freelance services from contractors based abroad (developers, designers, consultants in Poland, Portugal, Germany)
• Digital advertising platforms (Google Ads, Meta Ads — when the provider is not registered in Switzerland)

What does not count:

• Services from Swiss providers (they show VAT on their invoice, no reverse charge)
• Services from foreign providers who have registered for VAT in Switzerland (many large tech companies have a Swiss subsidiary)
• Physical goods from abroad (that is import tax, not purchase tax — see the section below)

How do you check whether a provider is registered for VAT in Switzerland?

Look at the invoice. If a Swiss VAT number appears, the provider is registered in Switzerland and the purchase tax does not apply — you deduct the shown VAT as input tax as normal. If the invoice shows no Swiss VAT or includes a "Reverse Charge" / "Self-assessment" notice, the purchase is subject to purchase tax and you must declare the 8.1% yourself.

With large platforms like Google or Microsoft, it is not always immediately clear which entity is billing. If Google Ireland issues the invoice, it is a foreign service. If Google Switzerland LLC bills you, it shows Swiss VAT. When in doubt: check the invoice, verify the VAT number, and if still unsure, ask the ESTV.

These services trigger the purchase tax (practical list)

To help you assess whether and how much purchase tax you need to declare, I have compiled the most common triggers among Swiss freelancers — with typical annual costs.

Software subscriptions

With software subscriptions alone, you as an individual will practically never exceed the CHF 10,000 threshold. But if you use several tools and add cloud hosting or external contractors, you quickly approach the limit.

Cloud hosting and infrastructure

If you run a web application and host on AWS or Google Cloud, you can easily exceed CHF 10,000 per year on hosting alone — and that means purchase tax liability, even if your total revenue as a freelancer is below CHF 100,000.

External contractors and freelancers from abroad

A single larger contract with a foreign freelancer can exceed the CHF 10,000 threshold — and trigger purchase tax liability for the entire year.

Digital advertising

Google Ads and Meta Ads are often billed by Irish or US entities. Annual costs for a small advertising budget of CHF 1,500 per month come to CHF 18,000 — well above the threshold.

Declaring the Swiss purchase tax: How figure 381 works in the VAT return

If you are VAT-registered and exceed the CHF 10,000 threshold, you declare the purchase tax in your regular VAT return via the ESTV ePortal. The relevant figure is 381 — "Purchase tax on services."

Step by step

1. Determine purchase volume. Add up all net amounts you paid for foreign services in the current quarter (or semester, depending on your filing period).
2. Fill in figure 381. Enter the total net amount in figure 381. The ePortal automatically calculates 8.1% VAT on it.
3. Deduct as input tax simultaneously. Enter the calculated amount in figure 400 (input tax on material and service expenses). The purchase tax is simultaneously owed and deducted as input tax — the result is neutral, as long as you are fully VAT-registered.
4. Keep records. You must retain invoices from foreign providers like any other invoice — for six years. Without a receipt, no input tax deduction; this also applies to the purchase tax.

Sample calculation

Petra, a web developer from Zurich, purchased the following foreign services in Q2:

• AWS hosting: CHF 3,000 (net)
• Developer in Poland: CHF 6,000 (net)
• GitHub Copilot (Teams): CHF 120 (net)
• Total: CHF 9,120

She enters CHF 9,120 in figure 381. The ePortal calculates 8.1% = CHF 738.72. At the same time, she enters CHF 738.72 in figure 400 (input tax). The purchase tax charges and discharges her VAT return in the same amount — neutral.

For details on the ePortal and the figures, see our guide on electronic VAT filing.

What applies to those not registered for VAT?

If you are not VAT-registered but still purchase more than CHF 10,000 in foreign services, you must register with the ESTV — but only for the purchase tax. This is a restricted registration where you only declare the purchase tax but do not need to show VAT on your own invoices. Details can be found on the ESTV VAT liability page.

In practice, this means you file a reduced VAT return that essentially only contains figure 381, without being able to deduct input tax at the same time. You pay the 8.1% to the ESTV and do not get it back. This is the point at which a voluntary VAT registration should be considered — because then you can deduct the input tax and neutralize the charge.

Input tax deduction: When you get the purchase tax back

The input tax deduction is the critical point with the purchase tax. It determines whether the tax is a pure declaration obligation (neutral) or an actual cost burden.

If you are VAT-registered

If you are fully VAT-registered, the purchase tax is neutral: you declare the amount in figure 381 (owed) and deduct it in figure 400 as input tax. The two amounts cancel each other out. You have no financial disadvantage, only a declaration effort.

Requirement: the foreign service must have been purchased for your business, and you must keep the foreign provider's invoice as a record. The invoice must contain the provider's name, your address as recipient, a description of the service, and the net amount. If the record is missing, the ESTV refuses the input tax deduction — and you are stuck with the tax burden.

If you are not VAT-registered

If you are not VAT-registered (revenue below CHF 100,000) and purchase more than CHF 10,000 in foreign services, you become subject to purchase tax. You must pay the 8.1% to the ESTV but cannot deduct it as input tax, because you do not file a VAT return in the conventional sense.

This means: the purchase tax becomes a real cost burden. At CHF 12,000 in AWS costs, that is CHF 972 per year out of your own pocket.

The solution: voluntary VAT registration. If you register voluntarily with the ESTV (possible from the first franc of revenue), you can deduct the purchase tax as input tax and neutralize it. Whether this pays off depends on how much input tax you would get back in total — not just from the purchase tax, but also from hardware, software, car, and other expenses. If the input tax exceeds the VAT on your own invoices, you get money back.

Input tax deduction with mixed use

If you use a foreign service partly for business and partly for private purposes (e.g., Adobe CC for client projects and personal photo editing), you may only deduct the business portion as input tax. For software that you use both professionally and privately, you should apply a reasonable allocation key (e.g., 80% business / 20% private) and document it.

This is the same principle as with any other input tax. Anyone who deducts purely private expenses as input tax risks retroactive claims and penalties during a VAT audit.

VAT exemption and invoices without VAT

If you register voluntarily, you will from then on show VAT on your own invoices. Swiss business customers deduct the VAT as input tax — for them it is neutral. Private customers, on the other hand, see a price increase of 8.1%. We have written up when you can issue invoices without VAT and when VAT registration kicks in our guide on VAT exemption.

Purchase tax vs. import tax vs. reverse charge: the difference

Terms like purchase tax, import tax, and reverse charge are often confused. Here is the clear distinction:

In short:

• Purchase tax (Bezugsteuer) = VAT on services from abroad. You declare and pay via the VAT return.
• Import tax (Einfuhrsteuer) = VAT on goods from abroad. You pay at customs (BAZG), not via the VAT return. If you are VAT-registered, you can deduct the paid amount as input tax. Details at BAZG — import tax and customs.
• Reverse charge = the procedure. It means that the recipient declares the tax themselves rather than the supplier billing it. The purchase tax is the Swiss application of the reverse charge procedure for services from abroad.

The reduced tax rate of 2.6% practically never applies to services — it covers food, books, and newspapers. When you purchase a service from abroad, the standard rate of 8.1% applies.

Booking the Swiss purchase tax correctly: real-world examples

The theory is now clear. Let us look at how the purchase tax plays out in concrete cases — three examples from the practice of Swiss freelancers.

Thomas, graphic designer from Basel

Thomas is VAT-registered and works as a freelance graphic designer. He uses the following foreign services:

• Adobe Creative Cloud: CHF 72.48/month = CHF 869.76/year
• Canva Pro: CHF 14.99/month = CHF 179.88/year
• Shutterstock subscription: CHF 29.00/month = CHF 348.00/year
• Total foreign services: CHF 1,397.64/year

At CHF 1,397.64, Thomas is well below the CHF 10,000 threshold. He is not subject to purchase tax and does not need to declare these purchases. This applies even though he is VAT-registered — the purchase tax obligation only kicks in from CHF 10,000, regardless of VAT registration.

If Thomas were to add a developer in Germany for CHF 9,000 the following year, he would reach CHF 10,397.64 and exceed the threshold. From the moment he exceeds the threshold, he becomes subject to purchase tax for the entire year — not just for the amount above CHF 10,000, but for the entire purchase volume. He must then declare CHF 10,397.64 × 8.1% = CHF 842.21 in figure 381 and deduct it as input tax at the same time. Since he is VAT-registered, the charge remains neutral.

Thomas records the foreign invoices in his accounting software under "Foreign services" and tags them with "Purchase tax." This way, he can see at year-end where he stands and whether he is approaching the threshold.

Petra, web developer from Zurich

Petra is VAT-registered and runs a small web agency. For a client project, she hires a developer in Poland for CHF 18,000. On top of that come her regular tools:

• AWS hosting: CHF 4,000/year
• GitHub Copilot: CHF 120/year
• Figma: CHF 180/year
• Polish developer: CHF 18,000
• Total: CHF 22,300/year

Petra is well above the CHF 10,000 threshold and therefore subject to purchase tax. She declares in figure 381: CHF 22,300 × 8.1% = CHF 1,806.30. At the same time, she deducts the same amount in figure 400 as input tax. The purchase tax is neutral for her — she pays nothing extra and gets nothing back; it is a pure declaration.

Important for Petra: she must keep the Polish developer's invoice. The invoice must be in English or German, contain the developer's name, her address, a description of the service, and the net amount. If a record is missing, the ESTV refuses the input tax deduction — and Petra would be stuck with CHF 1,806.30.

Petra creates her invoices with the invoicing software from Magic Heidi, which also records foreign purchases and automatically calculates the purchase tax.

Marco, consultant from Lucerne

Marco is a consultant and not VAT-registered — his annual revenue is CHF 85,000, below the CHF 100,000 threshold. He hosts a SaaS application on AWS and pays CHF 12,000 per year for it. He also uses smaller tools like Notion (CHF 138) and GitHub (CHF 120), which he must count together with AWS.

• AWS: CHF 12,000/year
• Notion: CHF 138/year
• GitHub: CHF 120/year
• Total: CHF 12,258/year

Marco is above CHF 10,000 and therefore subject to purchase tax — even though he is not VAT-registered. He must register with the ESTV (restricted to purchase tax) and pay 8.1% on CHF 12,258 = CHF 993.90 per year to the ESTV. Since he is not VAT-registered, he cannot deduct this amount as input tax. The CHF 993.90 is a real cost burden.

For Marco, the following consideration is worthwhile: if he voluntarily registered for VAT, he could deduct the purchase tax as input tax and neutralize it. On the other hand, he would have to add 8.1% VAT to his own invoices, which costs his clients 8.1% more (if end consumers) or is neutral (if business clients). Voluntary registration pays off for him if the input tax from purchase tax and other expenses (laptop, car, software) exceeds the VAT he would owe on his revenue.

What to do when you exceed the threshold?

If you realize during the current year that you will exceed the CHF 10,000 threshold:

1. Recalculate purchase volume. Add up all foreign services you have purchased since the beginning of the year.
2. Register with the ESTV. If you are not VAT-registered, register for the purchase tax. If you are already VAT-registered, you do not need to do anything else — the purchase tax becomes part of your regular return.
3. Collect records. From the moment you become subject to purchase tax, collect all invoices from foreign providers. Also retroactively for the current year, since the obligation applies from the first franc as soon as CHF 10,000 is exceeded.
4. Prepare your VAT return. If you are VAT-registered, enter the amount in figure 381 and deduct it in figure 400. If you are only subject to purchase tax, enter only figure 381.

The easiest solution for the entire VAT management: a Swiss accounting software like Magic Heidi, available from CHF 25 per month, which automatically calculates the purchase tax. If you currently use bexio, a comparison is worthwhile — Magic Heidi vs bexio shows where you can save costs.

The Swiss purchase tax sounds complicated at first, but the principle is clear: from CHF 10,000 in foreign services per year, you must declare 8.1% yourself. If you are VAT-registered, it is neutral. If not, it costs you money — unless you register voluntarily. Keep your records clean, book foreign purchases separately, and check at year-end where you stand. With the right software, this is a half-hour job, not a bureaucratic marathon.