VAT Registration Switzerland: Complete 2025 Guide

Planning to hit CHF 100,000 in revenue this year? Congratulations—but there's one crucial administrative task you need to handle: VAT registration.

Swiss Value Added Tax (Mehrwertsteuer/TVA) isn't optional once you cross certain thresholds, and getting it wrong can cost you thousands in penalties. But it doesn't have to be complicated.

This guide walks you through exactly when you need to register, how the process works in 2025, and which filing method will save you the most time and money.

What is VAT and How Does It Work in Switzerland?

VAT (Value Added Tax) is a consumption tax added to goods and services throughout the supply chain. In Switzerland, it's called MWST (Mehrwertsteuer) in German or TVA (Taxe sur la valeur ajoutée) in French.

Here's what matters for freelancers: When you're VAT-registered, you charge VAT on top of your services, collect it from clients, and forward it to the Federal Tax Administration. At the same time, you can reclaim VAT you've paid on business expenses.

Current VAT Rates in Switzerland

Switzerland has three VAT rates depending on what you're selling:

• 8.1% – Standard rate (most services and goods)
• 2.6% – Reduced rate (food, books, medicines)
• 3.8% – Special rate (accommodation services)

Most freelancers charge the standard 8.1% rate on their invoices.

Important: Switzerland delayed a planned rate increase. The current rates will remain in effect through 2027 (previously scheduled to increase in 2026).

Mandatory Registration: The CHF 100,000 Threshold

You must register for VAT if your annual worldwide turnover from taxable supplies exceeds CHF 100,000.

Here's the catch many freelancers miss: "worldwide turnover" means all your revenue, not just Swiss clients. If you earn CHF 70,000 from EU clients and CHF 40,000 from Swiss clients, you've crossed the threshold.

Once you're certain your revenue will exceed CHF 100,000 in a 12-month period, you have 30 days to register. Missing this deadline can result in fines up to CHF 10,000, plus you'll owe backdated VAT and 4% interest.

Voluntary Registration Below the Threshold

Even if you're earning less than CHF 100,000, you can choose to register voluntarily. This makes sense in several situations:

When voluntary registration helps:

• You have significant business expenses with VAT (office equipment, software subscriptions, coworking space)
• You work mainly with other VAT-registered businesses who can reclaim it anyway
• You want to appear more established to enterprise clients
• You're close to the threshold and want to smooth the transition

When to wait:

• Most of your clients are consumers who care about final price
• You have minimal business expenses
• You're focused on keeping administration simple
• Your revenue is nowhere near CHF 100,000

Critical commitment: If you register voluntarily, you're locked in for at least three years. Make sure the benefits justify the paperwork.

The 30-Day Registration Deadline (Don't Miss This)

Here's where many freelancers stumble: You must register within 30 days of becoming VAT liable, not when you feel like it.

The clock starts when you're reasonably certain your 12-month rolling revenue will exceed CHF 100,000. This means if you land a big contract in March that pushes your projected annual revenue over the threshold, you need to register by early April.

What Happens If You Miss the Deadline?

The Federal Tax Administration doesn't take this lightly:

• Fines up to CHF 10,000 depending on circumstances
• Backdated VAT liability (you owe VAT from when you should have registered)
• 4% interest on unpaid amounts
• Potential audit of your records

Pro tip: Start the registration process when you hit CHF 80,000. It takes about four weeks to process, and you don't want to be scrambling at CHF 99,000.

The Effective (Actual) Method - Detailed

How it works:

• Track all VAT you charge clients (output tax)
• Track all VAT you pay on business expenses (input tax)
• Pay the difference to the tax authority (or claim a refund)

Example calculation:

• VAT charged to clients: CHF 16,200
• VAT paid on expenses: CHF 3,240
• Amount owed: CHF 12,960

Filing frequency: Quarterly (every three months), with returns due 60 days after the quarter ends.

The Net Tax Rate (Flat Rate) Method - Detailed

Eligibility requirements:

• Annual turnover under CHF 5.005 million
• Annual VAT liability under CHF 103,000

For example, if your flat rate is 6.8% and you invoice CHF 150,000:

• VAT owed: CHF 150,000 × 6.8% = CHF 10,200

You still charge clients 8.1% VAT, but only remit the flat rate percentage.

Payment Deadlines and Interest

VAT payments are due the same day as your return—60 days after the period ends. Late payments incur 4% annual interest from the due date.

Pro tip: Set aside VAT collected immediately. It's not your money—it belongs to the tax authority. Keep it in a separate account to avoid cash flow crunches.

Invoicing Requirements

Your invoices must include:

• Your VAT registration number (CHE-XXX.XXX.XXX MWST)
• Date and invoice number
• Client details (name and address)
• Description of services/goods
• Net amount, VAT rate and amount, gross total

Example invoice line:

• Consulting services: CHF 5,000.00
• VAT 8.1%: CHF 405.00
• Total: CHF 5,405.00

Record Keeping Requirements

Keep all VAT-related documents for 10 years: invoices issued to clients, receipts for expenses with input VAT, bank statements, VAT returns filed, and correspondence with tax authorities.

Cross-Border Services and International Clients

Freelancers with international clients face additional complexity. Here's what you need to know.

B2B Services to EU/Non-Swiss Clients

General rule: Services to business clients outside Switzerland are typically zero-rated (0% VAT). You don't charge VAT, but you still report the revenue in your VAT return.

On your invoice: Include a statement like: "Reverse charge applies - VAT to be accounted for by recipient" or "Services provided outside Switzerland - no Swiss VAT applies."

What you need from clients: Their VAT registration number (if EU) to prove they're a business. Keep this documentation for audits.

B2C Services to Non-Swiss Consumers

Services delivered remotely (consulting, design, programming): Generally no Swiss VAT applies if the client is outside Switzerland.

Services performed in Switzerland (photography session, on-site consulting): May be subject to Swiss VAT even if the client is foreign. Location of performance matters.

Platform Economy Considerations

New in 2025: If you sell through online platforms (marketplaces, booking sites), the "deemed supplier concept" may apply. The platform—not you—might be responsible for VAT registration and payment.

This affects freelancers on Upwork, Fiverr, and similar platforms. Check with your platform about their VAT handling.

When to Get Professional Help

You can handle VAT registration yourself, but some situations call for professional advice:

Consider hiring a tax advisor if:

• You have complex cross-border sales
• You're unsure which filing method optimizes your situation
• You've missed deadlines and face penalties
• You operate in multiple cantons or countries
• Your business structure is complex (partnerships, holding companies)
• You're being audited by the tax authority

Cost consideration: A tax advisor charges CHF 150-300 per hour, but catching one major error can save you thousands in penalties.

Your VAT Registration Checklist

Here's your action plan, in order:

3-6 Months Before CHF 100,000

• Set up proper bookkeeping to track revenue accurately
• Get your UID number if you don't have one
• Research which filing method suits your business
• Set up separate bank account for VAT collected

At CHF 80,000 or When Crossing Threshold is Certain

• Create your AGOV login account
• Prepare all required information and documents
• Submit online registration via FTA portal
• Update invoice templates to include VAT

After Receiving VAT Number

• Add VAT number to all invoices and correspondence
• Start charging 8.1% VAT to Swiss clients
• Set up quarterly filing reminders (60-day deadlines)
• Review expense receipts to track claimable input VAT
• File your first VAT return on time

Ongoing

• File returns within 60 days of each period end
• Keep all VAT records for 10 years
• Review filing method annually to optimize
• Stay updated on rate and regulation changes

Last updated: January 2025. VAT regulations change periodically. Always verify current rates and rules with the Federal Tax Administration (ESTV) at estv.admin.ch.