Swiss VAT for Freelancers: Your Complete 2026 Guide

You've landed your first major client. Business is growing. You're on track to hit six figures this year.

Then reality hits: VAT registration.

If you're a freelancer in Switzerland approaching or exceeding CHF 100,000 in annual turnover, you need to understand Mehrwertsteuer (MWST), Taxe sur la valeur ajoutée (TVA), or Imposta sul valore aggiunto (IVA) – Switzerland's Value Added Tax system.

This guide cuts through the complexity. You'll learn exactly when to register, how to charge the correct rates, what you can deduct, and how to stay compliant without drowning in paperwork.

The CHF 100,000 Threshold

The threshold is CHF 100,000 in annual turnover. Once you exceed this amount, you have 30 days to register with the Swiss Federal Tax Administration (ESTV/AFC/AFD).

Here's what counts toward that CHF 100,000:

• All revenue from goods and services you provide
• Revenue from both Swiss and international clients
• Income calculated on a rolling 12-month basis (not just the calendar year)

How the Rolling 12-Month Calculation Works

You don't wait until December 31 to check your numbers. Track your turnover continuously.

Example: Sophie is a graphic designer. Her monthly revenue in 2025:

• January to August: CHF 7,000/month = CHF 56,000
• September: CHF 15,000 (landed a big client)
• October to November: CHF 8,000/month = CHF 16,000

By November 30, her trailing 12-month total is CHF 103,000. She exceeded the threshold in November, which means she must register by December 30.

The 30-day deadline is strict. Miss it, and you face penalties.

The CHF 250,000 Exception

Non-profit sports and cultural organizations have a higher threshold of CHF 250,000. Standard businesses stick with CHF 100,000.

Which Rate for Your Services?

Most freelancers charge 8.1%. Unless you're in publishing, food production, or hospitality, you'll use the standard rate.

Mixed services require attention. If you're a freelance writer creating content for a book (2.6%) versus marketing copy (8.1%), track these separately.

Common mistake: Applying 2.6% to e-books because printed books qualify. Digital publications actually fall under 8.1% unless specifically exempted.

VAT-Exempt Services

Some services are completely exempt from VAT:

• Healthcare and medical services
• Education and training (with specific conditions)
• Insurance and financial services
• Cultural activities (some)

If your services are exempt, you don't charge VAT. The downside? You can't deduct input tax on your business expenses either.

Registration Steps

1. Gather your information:

• UID number (Unternehmens-Identifikationsnummer/Numéro d'identification des entreprises)
• Business details and structure
• Estimated annual turnover
• Start date of VAT liability
• Bank account for VAT payments

2. Submit online application: Visit the ESTV ePortal and complete the registration form. The system guides you through each section.

3. Wait for approval: Processing typically takes 3-4 weeks. You'll receive your VAT registration number (starts with CHE, followed by nine digits and ending in MWST/TVA/IVA).

4. Update your invoices: Once registered, all invoices must include your VAT number and show VAT separately.

The 30-Day Rule

You must register within 30 days of exceeding the threshold. This isn't a suggestion – it's a legal requirement.

Your VAT liability begins when you exceed CHF 100,000, not when you complete registration. If you register late, you owe VAT retroactively from that date.

Sample Invoice Layout

Invoice #2026-001
Date: January 15, 2026

From:
Marc Dupont Consulting
Hauptstrasse 123
8000 Zürich
CHE-123.456.789 MWST

To:
ABC Company AG
Bahnhofstrasse 45
8001 Zürich

Services provided:
Marketing strategy consultation    CHF 5,000.00

Net amount:                        CHF 5,000.00
MWST 8.1%:                        CHF   405.00
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Total due:                        CHF 5,405.00

Payment due: February 14, 2026

Invoicing International Clients

For foreign business clients (B2B):

• No Swiss VAT charged (0% rate)
• Note on invoice: "Service provided outside Switzerland, 0% VAT"
• Keep proof of client's business status and location

For foreign private clients (B2C):

• Generally 0% if service is used outside Switzerland
• Physical presence matters – where is the service consumed?

Switzerland is not in the EU. This is crucial. You don't follow EU VAT rules, despite being geographically close. No MOSS registration. No reverse-charge mechanisms with EU clients.

How to Calculate What You Owe

The effective method (standard approach):

1. Calculate output tax: Total VAT collected from clients
2. Calculate input tax: Total VAT paid on business expenses
3. Subtract input from output: The difference is what you owe (or are owed)

Example: Laura runs a consulting business.

Q1 2026:

• Invoiced clients: CHF 32,400 (including CHF 2,430 VAT at 8.1%)
• Business expenses: CHF 5,405 (including CHF 405 VAT at 8.1%)

Output tax: CHF 2,430
Input tax: CHF 405
Amount due: CHF 2,025

Laura files her return and pays CHF 2,025 to ESTV by May 31.

The Flat-Rate Method Alternative

Eligible businesses (turnover under CHF 5,005,000) can use simplified flat-rate percentages instead of tracking every transaction.

You apply a fixed percentage to your total turnover, based on your industry. For most service businesses, the rate is around 0.1% to 6.5%.

Benefit: Much less bookkeeping.
Drawback: Often results in paying more VAT than the effective method.

The Mental Shift

Before VAT registration:
You invoice CHF 5,000. You keep CHF 5,000.

After VAT registration:
You invoice CHF 5,405 (CHF 5,000 + 8.1% VAT). You keep CHF 5,000. The CHF 405 belongs to the ESTV.

Your effective revenue doesn't change, but your invoices increase by 8.1%. Your clients pay more, but you don't keep it.

Managing Quarterly Payments

Many freelancers struggle with VAT payments because the money feels like "theirs" until the return is due.

Solution: Set aside VAT immediately when invoiced. Open a separate bank account or use accounting software that tracks VAT liability in real-time.

Example scenario:

You invoice CHF 10,810 in January (CHF 10,000 + CHF 810 VAT). Immediately move CHF 810 to your VAT account. When you file in May, the money is waiting.

Input Tax Helps Your Cash Flow

The input tax deduction reduces your VAT burden significantly.

If you invoice CHF 10,000 (CHF 810 VAT) but spend CHF 2,000 on business expenses (CHF 162 VAT), you only owe CHF 648 to ESTV.

High business expenses actually improve your VAT position. This is why voluntary registration makes sense for freelancers with significant costs.

Consider a Tax Advisor When:

You're approaching the registration threshold. A one-hour consultation before you hit CHF 100,000 prevents costly mistakes.

You have mixed Swiss and international clients. Place-of-supply rules get complicated with cross-border services.

You're audited. Don't face the ESTV alone. Professional representation pays for itself.

Your business structure changes. Moving from sole proprietor to GmbH affects VAT obligations.

You're consistently in VAT credit. An advisor can help optimize filing frequency and improve cash flow.

DIY Makes Sense When:

Your business is straightforward: Swiss clients, one VAT rate, standard services. Modern accounting software handles calculations and return preparation automatically.

The Bottom Line

Swiss VAT registration changes how you invoice and manage cash flow. But it's not a burden once you understand the rules:

• Register within 30 days of exceeding CHF 100,000
• Charge 8.1% on most services
• File quarterly returns within 60 days
• Deduct VAT on business expenses
• Keep records for 10 years
• Use software to automate the process

Thousands of Swiss freelancers manage VAT successfully. With the right system, you'll spend 30 minutes per quarter on compliance instead of days.