Swiss VAT Management Made Simple
Track what you earn. Track what you spend. Know exactly what you owe. Magic Heidi handles VAT calculations so you can focus on your work—not paperwork.
Why Swiss Freelancers Struggle
with VAT
VAT in Switzerland isn't complicated once you understand it. But most freelancers don't have time to become tax experts. Here's what trips people up:
Swiss VAT Basics Every Freelancer Should Know
Before diving into features, here's what you actually need to understand about VAT (MWST/TVA/IVA) in Switzerland.
Do You Need to Register?
The CHF 100,000 rule: As of January 2025, you must register for VAT if your annual turnover exceeds CHF 100,000. This applies regardless of your business structure.
Below the threshold? You can voluntarily register. Why would you? To reclaim VAT on your business expenses. If you buy expensive equipment or services, voluntary registration might save you money.
Current VAT Rates (2024/2025)
Switzerland has three VAT rates:
| Rate | What It Covers |
|---|---|
| 8.1% | Standard rate for most services and goods |
| 3.8% | Hotel accommodation |
| 2.6% | Essentials: food, books, medicines, cultural events |
Good news: Switzerland's 8.1% standard rate is among the lowest in Europe.
Two Ways to Calculate VAT
This is where freelancers often leave money on the table.
Effective Method: You report actual VAT collected and subtract actual VAT paid on expenses. More paperwork, but potentially bigger savings if you have significant business expenses.
Net Tax Rate Method (Saldosteuersatz): You pay a fixed percentage of turnover based on your industry. Simpler, but you can't deduct input VAT. Available if your annual turnover stays under CHF 5,024,000 and VAT payable is under CHF 108,000.
Which should you choose? If your expenses are low, the flat rate saves time. If you buy lots of equipment or services, the effective method usually saves money. Magic Heidi calculates both so you can see which works better for you.
What Changed in 2025
Two important updates this year that every Swiss freelancer needs to know.
How Magic Heidi
Handles Your VAT
Everything you need to manage Swiss VAT with confidence.
VAT Dashboard
See your complete VAT position at a glance. No spreadsheets. No manual calculations.
- VAT collected on invoices
- VAT paid on expenses
- Net amount owed (or refund due)
- Breakdown by quarter
AI-Powered Expense Scanning
Snap a photo of a receipt. Our AI does the rest—the more expenses you track, the lower your tax bill.
- Extracts VAT amount automatically
- Identifies correct VAT rate
- Categorizes the expense
- Saves you from manual data entry
Invoice VAT Made Easy
Create professional invoices with correct VAT applied automatically.
- All Swiss rates supported (8.1%, 3.8%, 2.6%)
- 0% for foreign clients auto-applied
- QR-code invoices built in
- Currency conversion to CHF
FTA Portal Matching
Our VAT codes match the FTA online portal exactly. Copy numbers and paste—no translating between systems.
- Codes match FTA portal fields
- Simple copy-paste workflow
- No wondering which number goes where
- Deadline tracking included
Working with International Clients
If you serve clients outside Switzerland, you don't charge them VAT. But you still need to track these transactions correctly. Magic Heidi handles the complexity—you just select the client's country, and we apply the correct treatment.
Why Freelancers Choose Magic Heidi
You save CHF 300+ per year compared to alternatives. That's real money.
| Software | Magic Heidi | Bexio Starter | Bexio Pro | Infinity.swiss |
|---|---|---|---|---|
| Monthly Price | CHF 19 | CHF 45 | CHF 75 | CHF 38 |
| VAT Features | ✓ Full tracking | ✓ Included | ✓ + Team | ✓ Included |
| AI Scanning | ✓ Included | ✗ No | ✗ No | ✗ No |
| All Platforms | ✓ Yes | ⚠ Web only | ⚠ Web only | ⚠ Limited |
Built for Swiss Freelancers.
By Swiss People.
We're not a German product adapted for Switzerland. We're not a US platform with Swiss VAT bolted on. Magic Heidi was built by Swiss people, for Swiss people.
All rates and codes included
The Swiss standard
Copy-paste filing
No conversions needed
Works Everywhere You Do
Snap an expense photo on your phone at lunch. Review your VAT dashboard on your laptop that evening. Everything syncs automatically.
Frequently Asked Questions
When do I need to register for VAT in Switzerland?
Once your annual turnover exceeds CHF 100,000, registration is mandatory. You can register voluntarily below this threshold if you want to reclaim VAT on expenses.
What's the standard VAT rate in Switzerland?
8.1% for most goods and services. Reduced rates of 3.8% apply to hotels, and 2.6% for essentials like food, books, and medicines.
How often do I need to file VAT returns?
Quarterly for most freelancers. Returns and payment are due 60 days after each quarter ends. From 2025, annual filing is available for businesses under CHF 5,005,000 turnover.
What happens if I file late?
You'll pay interest at 4.5% per year (2025 rate) from the original due date. Even a few weeks late can cost you.
Do I charge VAT to foreign clients?
No. Services to clients outside Switzerland are zero-rated. You should include a note on invoices explaining the service isn't taxable in Switzerland.
How long do I need to keep records?
10 years. Keep all invoices, receipts, and supporting documents. Tax authorities can request them at any time.
What's the difference between effective and flat-rate VAT methods?
Effective method: Report actual VAT collected minus actual VAT paid on expenses. More work, but potentially bigger deductions. Flat-rate method: Pay a fixed percentage of turnover based on your industry. Simpler, but no input VAT deductions.
What You Get with Magic Heidi
All for CHF 25/month. All platforms included.
VAT Management
Real-time dashboard, quarterly breakdowns, FTA portal matching, both filing methods
Invoicing
Professional Swiss invoices, QR-code payments, automatic VAT, multi-currency
Expense Tracking
AI receipt scanning, automatic VAT extraction, category organization, photo storage
Accounting
Bank statement import, cash flow overview, tax-ready reports, Swiss chart of accounts
Simple Pricing. No Surprises.
One plan. All features. Cancel anytime.
Free Trial
- 3 invoices
- 3 expenses
- All features unlocked
- No credit card required
Annual
- Unlimited invoices
- Unlimited expenses
- AI expense scanning
- Full VAT management
- Bank statement import
- All platforms included
- Priority support
Monthly
- Unlimited invoices
- Unlimited expenses
- AI expense scanning
- Full VAT management
- Bank statement import
- All platforms included
Stop Overpaying for VAT Software
Track your VAT. Pay what you owe. Keep the rest. Magic Heidi gives you everything you need at a price that makes sense.