Swiss VAT Rates 2025-2026: Your Complete Compliance Guide
If you're running a business in Switzerland—or selling to Swiss customers—understanding VAT isn't optional. It's essential for staying compliant, pricing correctly, and avoiding penalties that can reach CHF 800,000.
The good news? Swiss VAT is straightforward once you know the rules. This guide covers everything: current rates, upcoming 2028 changes, registration requirements, filing deadlines, and practical steps to keep your business on track.
Current Swiss VAT Rates (2025-2027)
Since January 1, 2024, Switzerland has operated under revised VAT rates following the AHV (Old Age and Survivors' Insurance) reform. These rates remain in effect through 2027:
| Rate Type | Current Rate | Applies To |
|---|---|---|
| Standard Rate | 8.1% | Most goods and services |
| Reduced Rate | 2.6% | Food, non-alcoholic beverages, books, newspapers, medicines, menstrual products |
| Accommodation Rate | 3.8% | Hotel stays, B&Bs, similar lodging |
| Zero Rate | 0% | Exports of goods |
Key 2025 change: As of January 1, 2025, menstrual hygiene products (tampons, pads, menstrual cups) moved from the 8.1% standard rate to the 2.6% reduced rate.
What Changed from the Previous Rates?
For context, here's what increased in 2024:
- Standard rate: 7.7% → 8.1% (+0.4%)
- Reduced rate: 2.5% → 2.6% (+0.1%)
- Accommodation rate: 3.7% → 3.8% (+0.1%)
These increases fund Switzerland's pension system, ensuring long-term social security stability.
Coming in 2028: Proposed Rate Increases
Mark your calendar: Switzerland plans to increase VAT rates again on January 1, 2028 to fund a 13th monthly pension payment.
Proposed 2028 Rates
| Rate Type | Current (2025-2027) | Proposed (2028+) | Increase |
|---|---|---|---|
| Standard | 8.1% | 8.8% | +0.7% |
| Reduced | 2.6% | 2.8% | +0.2% |
| Accommodation | 3.8% | 4.2% | +0.4% |
Important: These increases require parliamentary approval (by March 2025) and a public referendum (expected September 2025). They're highly likely to pass but aren't yet law.
What You Should Do Now
- Update financial forecasts assuming 8.8% from 2028
- Review pricing strategies for long-term contracts
- Monitor the referendum results in September 2025
- Plan system updates if you hardcode VAT rates in your software
Do You Need to Register for Swiss VAT?
Not every business must register for VAT. Here's how to determine your obligation.
Registration Thresholds
General businesses:
- Register if annual turnover from taxable Swiss supplies exceeds CHF 100,000
Non-profit organizations, voluntary sports/cultural clubs:
- Register if annual turnover exceeds CHF 250,000
Critical Rule for Foreign Companies
If you're based outside Switzerland, you must consider your worldwide annual turnover, not just Swiss sales. This means most international businesses making any taxable transactions in Switzerland will need to register—even with small Swiss revenue.
Registration Timeline
- Deadline: Within 30 days of becoming liable for VAT
- Processing time: Approximately 4 weeks to receive your Swiss VAT number
- Penalty for delays: Fines and penalties apply if you miss the 30-day window
Fiscal Representative Requirement
All non-Swiss businesses operating in Switzerland must appoint a fiscal representative—a Swiss-based person or entity responsible for your VAT compliance. This representative handles communications with the Federal Tax Administration (FTA) on your behalf.
Major 2025 VAT Law Changes
January 1, 2025 brought significant updates to Swiss VAT law. Here's what changed.
Platform Taxation
Online marketplaces now handle VAT for sales. The platform—not individual sellers—becomes responsible for registration and remittance.
Expanded Exemptions
New exemptions include outpatient clinics, care coordination, travel services, cultural events, and private home care.
Menstrual Products
Menstrual hygiene products now qualify for 2.6% reduced rate instead of 8.1%, reducing costs significantly.
1. Platform Taxation (E-Commerce Sellers, Take Note)
Switzerland introduced a "deemed supplier" concept for online marketplace sales.
What this means: If you sell goods through platforms like Amazon, eBay, or other marketplaces, the platform itself—not you—becomes responsible for VAT registration and remittance.
Impact: Individual sellers may no longer need separate VAT registration for platform sales. However, you're still responsible for VAT on direct sales through your own website or channels.
2. Expanded VAT Exemptions
New exemptions (without input tax credit) now include:
- Outpatient clinics and day clinics for medical treatments
- Care coordination services related to medical treatment (managed care)
- Travel services resold by domestic and foreign travel agencies
- Active participation in cultural events
- Provision of infrastructure for attending physicians
- Private home care services (Spitex)
- Staff provision by non-profit organizations
Without input tax credit means you can't reclaim VAT paid on related business expenses—factor this into your pricing.
When to Charge VAT: The Essential Rules
Understanding when to charge Swiss VAT is critical for compliance.
Charge Swiss VAT when all three conditions are met:
- ✅ You're registered for Swiss VAT
- ✅ The supply is taxable in Switzerland (based on place of supply rules)
- ✅ The supply is not exempt or zero-rated
Place of Supply Rules
Swiss VAT law determines where a transaction is taxed based on:
- Goods: Where the goods are located or delivered
- Services: Usually where the recipient is based (for B2B) or where the supplier is based (for B2C)
Important: Switzerland classifies rentals, repairs, installation work, and construction as supplies of goods (not services), affecting place of taxation. This differs from EU rules.
The Digital Services Exception
For digital services, telecommunications, and e-commerce:
- B2B sales: Generally no Swiss VAT needed if you can verify the buyer's business status
- B2C sales: Triggers Swiss VAT registration once you exceed CHF 100,000 worldwide turnover
"Force of attraction" rule: Even one B2C sale makes all your supplies (B2B and B2C) taxable in Switzerland, requiring registration. This is stricter than EU rules.
Swiss VAT Compliance:
Filing and Invoicing
Your filing frequency depends on your business size and compliance history.
Filing Frequencies
Choose the right filing schedule for your business size and compliance record.
- Quarterly: Standard for most businesses (60-day deadline)
- Monthly: For businesses in refund position
- Semi-annual: Small businesses under special scheme
- Annual: SMEs with exemplary compliance (new 2025)
Invoice Requirements
Every Swiss VAT invoice must include these essential elements.
- Swiss VAT number (CHE-XXX.XXX.XXX MWST/TVA/IVA)
- Business name, address, and customer details
- Invoice date and description of goods/services
- Net amounts, VAT rates, and totals clearly shown
Record Retention
Maintain comprehensive documentation to stay compliant.
- Keep all VAT records for 10 years
- Include invoices issued and received
- Store bank statements and contracts
- Retain import/export documentation
Input Tax Deduction: Reclaim VAT on Business Expenses
If you're VAT-registered, you can typically deduct VAT paid on business purchases from the VAT you collect from customers.
How It Works
Example: You invoice a client CHF 10,810 (CHF 10,000 + 8.1% VAT = CHF 810 VAT). You paid CHF 2,160 for supplies (CHF 2,000 + CHF 160 VAT).
- VAT collected: CHF 810
- Input VAT paid: CHF 160
- Net VAT owed to FTA: CHF 650
What You Can Deduct
Input tax is deductible for purchases used to provide taxable supplies:
- ✅ Office supplies and equipment
- ✅ Professional services (accounting, legal)
- ✅ Marketing and advertising
- ✅ Business travel
- ✅ Raw materials and inventory
What You Cannot Deduct
Input tax is not deductible for:
- ❌ Purchases related to VAT-exempt-without-credit supplies
- ❌ Personal expenses
- ❌ Entertainment and gifts (with exceptions)
Penalties and Consequences for Non-Compliance
Swiss VAT penalties are serious. Here's what you risk.
Fine Amounts
| Violation Type | Maximum Penalty |
|---|---|
| Serious VAT evasion | CHF 800,000 |
| Negligent errors | CHF 200,000 |
| Minor mistakes | CHF 20,000 |
Late Payment Interest
Current rate: 4.75% per year on outstanding VAT amounts (as of January 2024)
Common Violations
The most frequent issues that trigger penalties:
- Failure to register within 30 days of liability
- Late filing of VAT returns (beyond 60-day deadline)
- Incorrect VAT rates applied to goods/services
- Missing invoice requirements (incomplete documentation)
- Inaccurate reporting (underreporting sales or over-claiming input tax)
How to Avoid Penalties
- Set calendar reminders for filing deadlines
- Use accounting software that handles Swiss VAT correctly
- Conduct regular internal audits
- Consult a tax advisor for complex situations
- Keep meticulous records for 10 years
Common VAT Exemptions Explained
Understanding exemptions prevents overcharging customers and helps you price services correctly.
Exempt Without Input Tax Credit
Healthcare, financial services, education, cultural services, real estate, travel agency services. You cannot deduct VAT on related expenses.
Zero-Rated (With Input Tax Credit)
Exports of goods, international transport, cross-border services. You can deduct VAT on related expenses while not charging output VAT.
Exempt Without Input Tax Credit
These supplies are VAT-free, but you cannot deduct VAT on related expenses:
- Healthcare and hospital services (expanded in 2025)
- Financial services (banking, insurance)
- Education and training
- Cultural services (certain types)
- Real estate transactions
- Travel agency services (new for 2025)
Pricing consideration: Build the non-deductible VAT cost into your fees.
Zero-Rated (Fully Exempt with Input Tax Credit)
These supplies are VAT-free, and you can deduct VAT on related expenses:
- Exports of goods
- International transport services
- Certain cross-border services
Competitive advantage: Lower costs since you reclaim input VAT without charging output VAT.
Practical Scenarios: VAT in Action
Real-world examples to help you understand how Swiss VAT applies to different business situations.
Scenario 1: Freelance Consultant
Situation: You're a Zurich-based marketing consultant earning CHF 120,000 annually.
VAT obligation: Yes (exceeds CHF 100,000 threshold)
What to do:
- Register for VAT within 30 days of reaching CHF 100,000
- Charge 8.1% on all invoices going forward
- File quarterly returns (60-day deadline)
- Reclaim VAT on business expenses (software, coworking space, etc.)
Invoice example: CHF 5,000 project fee → Charge CHF 5,405 (CHF 5,000 + CHF 405 VAT)
Scenario 2: E-Commerce Store (International)
Situation: You're a German online retailer selling electronics to Swiss consumers with CHF 150,000 annual Swiss sales.
VAT obligation: Yes (worldwide turnover matters; exceeds CHF 100,000)
What to do:
- Appoint a Swiss fiscal representative
- Register for Swiss VAT
- Charge 8.1% on goods delivered to Switzerland
- If selling through platforms (Amazon), check if platform handles VAT
- File quarterly returns
Complication: Swiss customs duties may also apply for physical goods—coordinate with your logistics provider.
Scenario 3: Accommodation Provider
Situation: You operate a bed & breakfast in Lucerne with CHF 80,000 annual revenue.
VAT obligation: No (below CHF 100,000 threshold)
Option: Voluntary registration (allows you to reclaim VAT on renovations, supplies)
If you register: Charge 3.8% accommodation rate on stays
Quick Reference: VAT Rates at a Glance
Current rates through 2027 and proposed changes for 2028.
Your VAT Compliance Checklist
Use this checklist to stay on track with Swiss VAT requirements.
Initial Setup
- Calculate annual turnover to determine registration requirement
- Register within 30 days if you exceed CHF 100,000
- Appoint fiscal representative (if based outside Switzerland)
- Set up VAT tracking in accounting system
- Create compliant invoice templates
Ongoing Compliance
- Charge correct VAT rate on all taxable supplies
- Issue proper invoices with all required information
- Track input VAT on business purchases
- File returns on time (quarterly standard: 60-day deadline)
- Pay VAT owed or claim refunds promptly
- Maintain all records for 10 years
- Monitor for law changes (subscribe to FTA updates)
Future Planning
- Review pricing strategy for 2028 rate increases
- Budget for higher VAT costs starting 2028
- Update customer contracts if rates are specified
- Plan system updates for new rates
How Magic Heidi Simplifies Swiss VAT
Managing VAT manually is tedious and error-prone. Magic Heidi automates the heavy lifting for Swiss businesses.
Automated VAT Management
With built-in Swiss VAT intelligence, Magic Heidi reduces compliance risk and saves hours every quarter.
Automatic Rate Application
Apply the correct 8.1%, 2.6%, or 3.8% based on your service or product type automatically.
- Smart rate detection by product category
- Automatic updates for rate changes
- Support for all Swiss VAT rates
- Mixed-rate invoicing support
Compliant Invoicing
Generate invoices with all required Swiss VAT elements included automatically.
- All mandatory VAT fields included
- Proper CHE VAT number formatting
- Multi-language invoice templates
- QR invoice integration
Input Tax Tracking
Categorize expenses and track deductible VAT automatically with AI-powered scanning.
- AI expense receipt scanning
- Automatic VAT extraction
- Deductible vs non-deductible classification
- Real-time VAT balance tracking
Official Resources
For the latest information, always consult:
- Swiss Federal Tax Administration (FTA): estv.admin.ch
- VAT ePortal (filing): Access through your FTA account
- VAT Information Publication: Updated guidance published January 30, 2025
- VAT Hotline: Contact FTA for specific questions about your situation
Stay Ahead of Swiss VAT Changes
Swiss VAT isn't static. With 2025 law changes already in effect and 2028 rate increases on the horizon, staying informed is critical. Try Magic Heidi free and experience automated compliance that saves time and reduces errors.