Net VAT Accounting Method in Switzerland (Saldosteuersatzmethode): Updated Guide for 2025/2026

Net VAT Accounting Method in Switzerland (Saldosteuersatzmethode): The 2025/2026 Playbook for SMEs

If you run a Swiss SME, freelance business, agency, trade, or small hospitality/retail operation, VAT admin can quickly become a time sink. Switzerland’s net VAT accounting method—better known as the net tax rate method or Saldosteuersatzmethode (DE)—exists to reduce that burden.

This guide explains, in plain English:

• What the net VAT accounting method is (and what it isn’t)
• Who can use it and when it’s financially smart
• How to calculate VAT under the method
• What changed on 1 January 2025 (important for mixed activities and switching)
• Practical bookkeeping tips, common scenarios, and FAQs

Last updated: January 2026.
Primary reference: Swiss Federal Tax Administration (ESTV/FTA) guidance on the Saldosteuersatzmethode changes from 2025 and official net tax rate lists.
Source: https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

Quick glossary (so you don’t get lost)

• VAT / MWST (DE) / TVA (FR): Value Added Tax in Switzerland
• ESTV / AFC / FTA: Swiss Federal Tax Administration
• Net VAT accounting method = Net tax rate method
• Saldosteuersatzmethode (DE) / taux de la dette fiscale nette (FR): official naming commonly used in Switzerland
• Effective method: the “standard” VAT method where you report output VAT minus input VAT

What is the net VAT accounting method (Saldosteuersatzmethode)?

The net VAT accounting method is a simplified way to settle Swiss VAT. Instead of calculating VAT by tracking:

• output VAT (VAT charged to customers) and
• input VAT (VAT paid on purchases you can deduct),

you simply apply a net tax rate (Saldosteuersatz) to your gross turnover (incl. VAT).

In other words, your VAT due becomes a predictable percentage of revenue, based on your business activity.

Why this method exists

It’s designed primarily for SMEs with simpler structures where the administrative cost of detailed VAT accounting can outweigh the benefit of perfectly accurate input VAT recovery.

Net method vs effective method (standard VAT accounting)

Under the effective method (standard)

You typically:

• charge VAT on taxable invoices (e.g., 8.1%, 2.6%, 3.8%)
• track VAT on every expense where input VAT is deductible
• file VAT returns where you pay:
  output VAT − input VAT = VAT due (or refund)

Under the net tax rate method (Saldosteuersatz)

You:

• still invoice as a VAT-registered business (more on invoicing below)
• do not deduct input VAT in the usual way
• calculate VAT due as:
  gross taxable turnover (incl. VAT) × net tax rate

What this changes in real life

• Fewer VAT bookkeeping decisions (especially for expenses)
• Less reconciliation work at VAT filing time
• But: large purchases/investments can become “more expensive” because you’re not reclaiming input VAT separately

Who can use the net VAT accounting method in Switzerland?

Eligibility is determined by the Swiss Federal Tax Administration and depends on thresholds and your business model. The goal is to keep the method focused on SMEs.

Because thresholds and administrative practice can change, always verify the current conditions on ESTV/FTA before applying (or ask your fiduciary).

Typical eligibility criteria (in practice)

Most businesses qualify when they:

• are VAT-registered (or registering), and
• stay within the applicable turnover and VAT-due limits, and
• have activities that can be assigned to the official net tax rate categories

Who should be cautious (or may be excluded)

Even if you qualify on paper, the method is often a poor fit if you:

• have high input VAT (e.g., equipment-heavy operations, high-cost goods, major renovation/build-outs)
• frequently make large capital expenditures (CapEx)
• have complex VAT scenarios (international services, reverse-charge-heavy models, frequent corrections)
• operate with special schemes that don’t align well with net settlement

For the most authoritative and current rules (including 2025 changes), use the official ESTV/FTA page:
https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

How VAT is calculated under the net tax rate method

The core calculation is simple:

VAT due = gross taxable turnover (incl. VAT) × net tax rate

Example (simple)

• Quarterly gross turnover (incl. VAT): CHF 100,000
• Assigned net tax rate: 5.3%

VAT due:
CHF 100,000 × 0.053 = CHF 5,300

That’s what you declare and pay for that period (subject to special cases like corrections, imports, or reverse charge obligations).

Why “gross turnover (incl. VAT)” matters

This is a common point of confusion. Under this method, the base is typically the VAT-included turnover, not net sales. That’s one reason the net tax rate percentages look “lower” than the standard statutory VAT rates.

Net tax rates (Saldosteuersätze): where to find the official list

Net tax rates are industry/activity-specific. The ESTV/FTA publishes the official list and updates it when needed.

Because publishing large tables inside blog posts becomes outdated quickly (and can mislead readers), the best practice is:

• summarize how rates are assigned
• link to the official list for the current rate(s)

Official source (ESTV/FTA):
https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

How rates are assigned if you have more than one activity

Your business may have:

• one main activity (one net tax rate), or
• multiple activities (multiple rates may apply—especially after 2025; see below)

This makes clean revenue categorization important in your bookkeeping and invoicing setup.

What changed on 1 January 2025 (and why it matters)

Swiss VAT rules were revised on 1 January 2025, and the net tax rate method was affected in ways that matter operationally—especially if you have mixed activities.

According to the Swiss Federal Tax Administration, key themes include:

1. More flexible use of multiple net tax rates
2. The 10% rule becomes a practical “line in the sand” for when additional activities must be treated separately
3. Updated approaches around mixed activities (previously often discussed with “mixed branch/50% rule” logic in older summaries)
4. More explicit handling of switching adjustments, including residual value concepts when moving between methods

Always cross-check the current wording and examples on the official ESTV/FTA guidance page:
https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

The 10% rule (plain-English explanation)

If you perform an additional activity that is more than “incidental,” you may need to apply another net tax rate to that portion of your turnover.

The practical takeaway:
If a secondary activity represents a meaningful share of revenue, you’ll need bookkeeping that can separate turnover by activity.

Why this affects your bookkeeping software setup

Post-2025, the net method is still “simpler than effective” for many SMEs, but it’s no longer “set one rate and forget it” if you have:

• multiple service lines
• product + service bundles
• hospitality + retail
• agency work + licensing/resale
• construction/trades + material sales billed separately

Your chart of accounts and invoicing items should make it easy to report turnover by net tax rate category.

Pros & cons: when the net method is a win (and when it isn’t)

Advantages

1) Significantly simpler VAT administration

You reduce the need to:

• validate input VAT on every expense
• track recoverability nuances
• reconcile dozens of VAT codes at filing time

For small teams, this is often the #1 reason to choose the Saldosteuersatzmethode.

2) More predictable VAT burden

Because VAT due is a fixed percentage of turnover, cash-flow planning is easier—especially for service businesses with stable margins.

3) Often fewer corrections and less risk of VAT-code mistakes

Less complexity generally means fewer accidental overclaims or underclaims—particularly valuable if VAT isn’t your daily job.

Disadvantages

1) No classic input VAT deduction

This is the tradeoff: you don’t reclaim input VAT line-by-line (the net rate is intended to “approximate” typical input VAT for your sector).

If your business has above-average input VAT, you can end up paying more under the net method.

2) CapEx-heavy years can become costly

If you’re investing in:

• equipment
• vehicles (depending on use case)
• build-outs
• IT infrastructure
• expensive subcontractors

…the effective method can outperform the net method because input VAT recovery becomes material.

3) Mixed activities can add complexity (especially after 2025)

The method is still simplified, but if you cross the 10% threshold for secondary activities, you may need:

• multiple net tax rates
• separate revenue tracking
• extra discipline in item setup and bookkeeping categories

Decision framework: should you choose net tax rate or effective method?

Use this as a practical rule-of-thumb checklist.

The net VAT accounting method is usually a good fit if:

• You’re a service-heavy SME with relatively low VATable costs
• You value admin simplicity more than marginal VAT optimization
• You have few large investments
• Your activity fits cleanly into one (or a few) net tax rate categories
• You want fewer moving parts for your bookkeeping and VAT filings

The effective method is usually better if:

• Your purchases are large relative to sales (high input VAT ratio)
• You plan significant CapEx this year or next
• You do complex VAT work (international B2B services, reverse charge, frequent exemptions)
• Your business model has tight margins and VAT optimization matters more than time saved

Practical tip: Ask your fiduciary to run a side-by-side comparison using last year’s P&L plus next year’s expected CapEx. That’s often enough to make the decision clear.

Common scenarios (with “what to watch”)

1) Freelancer or agency (mostly Swiss B2B services)

Usually favorable under the net method because input VAT is often modest (software, coworking, marketing, subcontractors depending on structure).

Watch out for:
If subcontractor spend is high or you resell significant third-party costs, the effective method can become more attractive.

2) Small retailer (limited input VAT recovery benefit)

Retailers can benefit from simplified accounting if margins and input VAT patterns align with the assigned net rate.

Watch out for:
Frequent imports, large stock build-ups, or refurbishments can tilt the economics.

3) Hospitality (restaurant/café with mixed revenue streams)

Often a candidate for net tax rate treatment, but mixed turnover categories are common.

Watch out for:
If you have catering, events, merchandise, or take-away packaged goods as a meaningful share, you may need separate tracking and possibly multiple rates.

4) Trades / construction-related businesses

These can be eligible, and admin simplification is attractive.

Watch out for:
Materials-heavy projects, tools, vehicles, and major equipment purchases—effective method may win financially in CapEx-heavy periods.

5) “Mixed activities” business (post-2025 reality)

Example: a studio that does design services and sells physical products.

Best practice:
Set up separate income categories (or invoice items) per activity so you can:

• measure whether you cross the 10% rule
• report turnover by net tax rate cleanly
• avoid end-of-period rework

How to apply (or switch) to the net tax rate method

The net tax rate method is not something you casually “start using”—you typically apply / notify and receive confirmation and the applicable net tax rate(s).

Typical process (high level)

1. Confirm you meet the eligibility criteria and that your activities map to net tax rate categories
2. Apply/notify the ESTV/FTA according to their process
3. Configure your bookkeeping so turnover is tracked correctly (especially if multiple activities apply)
4. Start filing VAT under the net method from the approved start period

Switching methods: the point people miss

Switching isn’t just a checkbox. Moving between effective and net method can trigger adjustments, including rules tied to residual value (particularly relevant if you previously claimed input VAT on assets).

Because this is both technical and high-impact, treat switching as a mini-project:

• get confirmation on the effective date
• review assets and past input VAT claims
• document your calculations and rationale

Primary reference (ESTV/FTA):
https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

Invoicing under the net method: do you still show VAT rates?

This is a frequent confusion point.

Even if you settle VAT using a net tax rate, you still operate as a VAT-registered business. Invoices must follow Swiss invoicing requirements—often including VAT information depending on your invoice format and the type of supply.

If you’re unsure whether to show the statutory VAT rate (8.1% / 2.6% / 3.8%) on invoices in your specific setup, confirm with:

• your fiduciary, and/or
• official guidance, and/or
• your invoicing tool’s Swiss VAT templates

A helpful secondary reference and explainer is available from Swiss advisory sources (cross-check against ESTV):
https://www.nexova.ch/en/tax-and-legal/net-tax-rate-method/

Bookkeeping essentials: staying compliant without losing the “simplicity”

Even under the net method, you still need clean records. The difference is how VAT is computed, not whether you keep proper books.

What you should still keep

• sales invoices/receipts
• expense receipts and supplier invoices (even if you don’t deduct input VAT normally)
• bank statements and payment confirmations
• documentation for exports, reverse-charge items, and exempt turnover where relevant

If you have multiple activities (10% rule implications)

Set up your bookkeeping so you can easily produce:

• turnover per activity / category
• evidence for why a given net tax rate was applied
• an audit trail from invoice items → revenue accounts → VAT return figures

This is where modern bookkeeping tools help most: consistent invoice item mapping and automated revenue categorization reduce the risk of misreporting.

FAQ: Net VAT accounting method Switzerland (Saldosteuersatz)

1) What is the Swiss net VAT accounting method called in German and French?

• German: Saldosteuersatzmethode / Saldosteuersatz
• French: méthode du taux de la dette fiscale nette / taux de la dette fiscale nette

These are worth knowing because many official and advisory resources use DE/FR terms.

2) Can I use more than one net tax rate?

Yes—especially after the 2025 revision, multiple rates are more relevant in practice. The key is whether secondary activities exceed thresholds (commonly discussed via the 10% rule) and must be treated separately.
Source: ESTV/FTA page on changes from 2025.

3) What is the “10% rule” for Saldosteuersatz?

In practical terms, it determines when a secondary activity becomes significant enough that you need to apply a separate net tax rate and separate turnover tracking. Check the official ESTV guidance for the exact mechanics and examples.

4) Do I still submit VAT returns?

Yes. The method changes the calculation, not the obligation to file.

5) Do I file quarterly or semi-annually?

Filing cadence depends on your VAT setup and what the tax authority requires/permits for your case. Many businesses use the net method to reduce filing workload, but always confirm the current rules and your assigned reporting period.

A general overview of Swiss VAT context (rates and system) is available here:
https://www.aboutswitzerland.eda.admin.ch/en/taxation

6) Can the net method reduce my VAT bill?

Sometimes. It often benefits businesses with low input VAT relative to sales. If your input VAT is high (or you invest heavily), it can increase your VAT cost.

7) Is the net method good for startups?

It can be—if you’re service-based and don’t expect major investment purchases. If you’re building infrastructure or buying equipment early on, the effective method may be better.

8) What happens if I exceed the eligibility threshold mid-year?

You may need to switch methods and/or update your VAT treatment depending on the rules and timing. Treat this as time-sensitive and clarify with your fiduciary or the ESTV/FTA.

9) Can I reclaim input VAT at all under the net method?

Generally, the method removes the normal input VAT deduction mechanism for day-to-day purchases because the net rate assumes typical input VAT. Special cases can exist—always confirm with official guidance for your situation.

10) How do imports and reverse charge work under the net method?

Imports and reverse charge can still create VAT obligations that don’t behave like normal domestic sales. If your business frequently deals with cross-border purchases/services, get tailored advice—this is one area where “simple VAT” becomes complex quickly.

11) Where do I find the official net tax rate list (Saldosteuersätze Liste)?

Use the ESTV/FTA page and linked documents (PDFs):
https://www.estv.admin.ch/estv/de/home/mehrwertsteuer/mwst-abrechnen/mwst-aenderungen-2025/mwst-saldosteuersatzmethode-ab-2025.html

12) Can I switch back to the effective method later?

Often yes, but switching can involve timing rules and adjustments (including residual value logic). Plan it rather than reacting late.

The takeaway (and a simple action checklist)

The net VAT accounting method (Saldosteuersatzmethode) is still one of the best ways for Swiss SMEs to reduce VAT admin—but the 2025 changes make it even more important to set up clean revenue separation if you have mixed activities.

Use this checklist before you choose (or switch)

• Do we have low input VAT relative to sales (typical for service businesses)?
• Are we planning major CapEx in the next 12–24 months?
• Do we have multiple activities, and does any secondary activity approach the 10% rule relevance?
• Can our bookkeeping easily separate turnover by activity/rate?
• Have we reviewed the official ESTV/FTA guidance (2025+) and the current net tax rates list?

CTA: Want a faster “yes/no” decision (and clean implementation)?

If you want to know whether the net tax rate method will actually save you time and money—without creating a reporting headache—do this next:

1. Export last year’s P&L and a list of planned major purchases
2. Estimate whether your business has one activity or multiple (10% rule risk)
3. Build your VAT workflow so turnover is automatically split by activity

If you’re using accounting software, make sure it supports:

• clear VAT category mapping per income type
• separate tracking for mixed activities
• audit-friendly reporting

Need help structuring your VAT-ready bookkeeping workflow? Set up your invoicing and income categories now so your next VAT filing is straightforward—and so you can switch methods with confidence if you decide to.