Swiss Payment Terms and Default | Magic Heidi

Switzerland has no general statutory 30-day payment period. The contract, special rules and nature of the legal relationship matter. Agree payment terms before the engagement where possible, then reflect the agreement accurately on the invoice.

Being due is not the same as being in default

Under Article 75 CO, performance can be demanded immediately if its timing is determined neither by agreement nor by the nature of the legal relationship. Special rules for the contract type remain relevant. The invoice date alone therefore does not settle every question of when payment is due.

Article 102 CO treats default separately:

• A reminder after the debt falls due generally puts the debtor in default.
• An agreed fixed deadline can trigger default on expiry without a reminder.
• A unilateral “payable in 30 days” note on a later invoice is not automatically such an agreement.

A deadline clearly calculable from an accepted agreement can also be relevant. Document when the period starts and when necessary documents are received. A concrete invoice date does not itself shift the burden of proof or change an existing contract.

Agree deadlines before the engagement

Record the amount or calculation basis, triggering event and period in the quotation or contract. If timing depends on invoice receipt or acceptance of work, define that expressly.

Possible wording for discussion:

• “The fee is payable within 14 days of receipt of the invoice.”
• “CHF 4,000.00 on order confirmation, CHF 4,000.00 after concept approval and CHF 4,000.00 after acceptance; each payable within 14 days of receipt of the corresponding invoice.”
• “Payable by agreed specific date.”

These examples do not replace assessment of your contract type. General terms must be effectively incorporated and their content valid. Industry custom does not make every clause binding; B2B customers do not automatically accept every condition sent later either.

Which period suits your customers?

These are negotiation suggestions, not a statutory ladder or measured industry averages:

A short deadline guarantees no quick payment. Choose realistic terms and invoice promptly. For substantial work financed in advance, permissible advances and milestones can limit exposure; these differ from instalments on a completed invoice.

Entirely fictional calculation: A CHF 12,000.00 engagement is divided into three agreed CHF 4,000.00 milestones. The total remains CHF 12,000.00. The plan spreads due dates, but promises neither actual payment nor a successful project.

Compare early-payment discounts economically

An early-payment discount is a conditional price reduction, not a statutory entitlement. On CHF 20,000.00, 2% is CHF 400.00, leaving CHF 19,600.00 payable.

Compare the actual time gained: payment on day 10 rather than day 30 saves 20 days, not 30. Assuming 4% annual interest, financing CHF 20,000.00 for 20 days on a 365-day basis costs about CHF 43.84. That is much less than the CHF 400.00 discount. Less follow-up may offer an additional benefit, but is not guaranteed. See discount calculations and VAT.

Late payment: check the claim and response

Check incoming payments and any objections. A clear payment reminder can already be a legal demand. Its heading alone does not decide.

From default, statutory interest is generally 5% a year under Article 104 CO without proof of specific loss. Calculation only: CHF 10,000.00 × 5% × 30 / 365 = CHF 41.10 for 30 days in default. This is not a fixed monthly amount for every calendar month. Check contractual variations and special rules.

There is no general Swiss reminder-fee tariff. Check an effective agreement or additional loss under Article 106 CO that is not already covered by interest. A later announcement on the invoice does not automatically make a flat charge payable.

There is no duty to send three reminders. If discussion and a payment demand do not help, weigh debt enforcement. You must advance costs; a payment order confirms neither the claim's validity nor available assets.

Reflect agreed terms on the invoice

State the agreed period with a clear starting point and, where useful, the calculated date. If the invoice differs from the contract, agree the change with the customer; do not shorten an existing period unilaterally.

Payment terms are not a general mandatory particular under Article 26 of the VAT Act. Tax particulars are separate: clear identification of parties and supply, register indication and VAT number, supply period, consideration and tax information. For VAT-inclusive consideration, stating the applicable rate suffices. Invoice numbers are practically useful; QR payment details are technical data, not themselves prescribed by Article 26.

A QR-bill makes payment data easier to transfer. Not every QR variant requires the same reference; automatic allocation depends on the variant, bank data and software. The QR guide and invoice template help with presentation. They do not replace an agreement on when payment is due.

VAT timing does not follow the customer's deadline automatically

Under agreed-consideration accounting, output VAT generally arises on invoicing; under FTA-approved received-consideration accounting, on receipt of payment (Articles 39–40 of the VAT Act). Advances and partial payments can trigger special timing rules. A long customer payment period does not automatically defer the VAT liability. See VAT for freelancers.

Extensions, deferrals and limitation deadlines

For a new agreement, document the amount, new dates and treatment of interest already accruing. An extension can strain your cash flow; a customer promise does not guarantee ability to pay.

Monitor limitation independently of your reminder schedule. Article 127 CO sets the general ten-year period; Article 128 provides five-year periods for certain types of claim. A reminder does not interrupt limitation. Article 135 includes acknowledgement by the debtor and legal steps among the grounds for interruption. Check your actual claim rather than assuming ten years; see invoice limitation.

Frequently asked questions

Do 30 days always apply?

No. There is no such general Swiss rule. Check the contract, nature of the relationship and special rules.

Does “payable by” on an invoice automatically trigger default?

Not automatically. Article 102 paragraph 2 CO requires an agreed fixed deadline.

Can I change a payment period?

Agree a contractual change with the customer. A grace period you grant may also have consequences; record clearly what changes and what remains in force.

Sources

• Code of Obligations on Fedlex: Articles 75, 102–106, 127–128 and 135.
• VAT Act on Fedlex: Articles 26, 39 and 40.

General information, not individual legal or tax advice.