Skonto: calculate and explain it clearly

Short answer: Skonto is a discount for early payment. The rate and deadline need to be specified in the agreement; 2% within 10 days is a calculation example here, not a statutory or verified industry rate. A customer cannot simply deduct a discount on their own: it needs to be agreed or clearly offered on the invoice.

If you offer early payment discounts as a freelancer or small business, state more than the percentage. Make the deadline, calculation basis and full amount payable without the discount clear too.

What are early payment discounts used for in Switzerland?

Skonto is primarily a payment incentive. When the condition is met, the amount payable falls:

• Earlier payment can improve your cash flow.
• The customer saves a small amount.
• Measure whether it actually reduces the time customers take to pay.

In Swiss B2B business, you may encounter these terms on invoices to agencies, trades businesses, consultancies, suppliers or project-based service customers. They are not compulsory for a freelancer's invoices. They may be useful if you regularly offer longer payment terms.

Which terms are used in different languages?

The purpose is similar across Switzerland's language regions, but the terms differ:

• German: Skonto
• French: escompte
• Italian: often sconto di cassa, or more broadly a payment discount
• English: cash discount or early payment discount

If you invoice internationally or in several languages, explain how the discount works in the document itself rather than relying on the term alone.

Clear wording for your invoice

Full amount payable within 30 days.
2% early payment discount for payment within 10 days of the invoice date.

An alternative with the exact amount

Invoice total: CHF 1,000.00
For payment by 10 May 2026, you may deduct a 2% early payment discount.
Amount payable with the discount: CHF 980.00
After that date, the full invoice total of CHF 1,000.00 applies.

Practical rule: The less calculation the customer needs to do, the better. For recurring invoices, explicitly stating the reduced payment amount can be worthwhile.

Discount formula and VAT adjustment

Discount amount = agreed calculation basis × discount rate / 100. The payment amount is that basis minus the discount. If the condition covers the entire gross amount, the net consideration and VAT both decrease proportionately. If certain items are excluded or several VAT rates apply, allocate the deduction appropriately.

These are fictional calculations, not customer cases:

VAT example using the effective method, 8.1% VAT and agreed consideration: CHF 1,000.00 net plus CHF 81.00 VAT gives CHF 1,081.00 gross. A 2% discount deducts CHF 21.62, leaving CHF 1,059.38 to pay. The remaining net consideration is CHF 980.00 and the VAT is CHF 79.38. The reduction consists of CHF 20.00 net and CHF 1.62 VAT.

The tax base follows Article 24 of the Swiss VAT Act (MWSTG); the subsequent adjustment follows Article 41, not Article 28, which governs input tax deduction. When accounting on the basis of agreed consideration, adjust the output VAT liability when the correction is recorded or the corrected consideration is received. When accounting on the basis of received consideration, declare the amount actually received: do not deduct the discount again. A customer who has already claimed input tax must adjust that deduction accordingly.

In the FTA sample return for the effective method, line 235 concerns the reduction in consideration, not the tax amount alone. Turnover amounts depend on whether you use gross or net declaration: in this example, that means CHF 21.62 gross or CHF 20.00 net, not CHF 1.62. Update the tax calculation accordingly. For the net tax rate method and special cases, use the applicable instructions.

Keep a traceable record of the invoice, agreed condition, payment and adjustment entry. Where the discount was already agreed, the deduction alone does not require a new invoice for the supply. But saying that a credit note or document correction is never needed would go too far: genuine invoice errors need correcting separately. Articles 39–40 of the VAT Act govern the accounting basis and when tax becomes due.

Use a clear clause, not an unspecified discount

For a gross invoice of CHF 3,000.00, you could expressly offer:

If payment is received by discount deadline, we grant a 2% early payment discount on the entire invoice total including VAT: deduction CHF 60.00, amount payable CHF 2,940.00. After that, the full CHF 3,000.00 is payable by agreed payment date.

Align this clause with existing contracts. Specify whether receipt of payment or another event determines compliance with the discount deadline. A late or unagreed deduction is not an automatic price reduction: ask about it, reconcile the balance and decide whether to accept it as a goodwill gesture. A due date stated unilaterally on an invoice does not automatically put the customer in default under Article 102 paragraph 2 of the Code of Obligations (OR); that requires a corresponding agreement. See payment terms in Switzerland.

What does earlier payment cost?

With “2% within 10 days, otherwise net 30 days”, payment comes 20 days earlier. The rough linear approximation based on the full invoice amount is 2% × 360 / 20 = 36% per year. Relative to the amount actually paid early, the simple annualised credit-cost calculation is 2 / 98 × 360 / 20 = approximately 36.73%. This is not an effective interest rate with compounding: it is a comparison using an explicitly assumed 360-day year.

For the invoicing business, this means giving up CHF 60.00 on a CHF 3,000.00 invoice to receive CHF 2,940.00 twenty days earlier in this example. Compare that cost with the actual benefit, such as financing interest or administration saved. A discount guarantees neither payment nor freedom from later complaints.

Checklist before introducing a discount

1. Check payment history: Would the customer pay early anyway? If so, the discount may simply reduce revenue.
2. Calculate the margin: A 2% reduction in revenue is more than 2% of your profit. Calculate the contribution margin after the deduction.
3. Compare the time saved: Compare the discount deadline with actual past payment dates, not just the nominal payment term.
4. Define the clause clearly: State the rate, basis, start and end of the discount period, and payment amount. Identify exceptions explicitly.
5. Align the bookkeeping: Keep part payments, multiple VAT rates and subsequent deductions traceable.
6. Measure the effect: After an observation period you choose, compare payment times and costs. Do not assume a guaranteed improvement.

A payment reminder or an instalment plan serves a different purpose. Default interest requires the debtor to be in default; Skonto is a voluntary, conditional reduction before or by the agreed date.

Early payment discounts versus general discounts

These are often confused:

• A general discount reduces the price as part of the offer.
• An early payment discount reduces the amount payable only if the early payment condition is met.

In short:

• General discount = pricing terms.
• Early payment discount = payment terms.

Further reading:

• Swiss invoicing guide →
• Payment reminder templates →
• Preparing your invoices →
• Swiss bookkeeping software →

Sources

• Swiss VAT Act on Fedlex — Articles 24, 26 and 39–41: tax base, invoices and adjustments.
• Code of Obligations, Article 102 on Fedlex — default and an agreed due date.
• FTA sample return, effective method — line 235 records a reduction in consideration.

Content reviewed on 1 November 2026. The numerical examples are fictional. General information, not individual legal or tax advice.