VAT Switzerland Guide

Read our guide and find out all you need to know about VAT in Switzerland, from registration to filing, and more.

If you're considering expanding your business into Switzerland, understanding the Swiss VAT system is crucial for success. In this guide, we'll explore the intricacies of VAT in Switzerland, helping you navigate through its unique aspects so your business can thrive in this economically robust country.

What is the Switzerland VAT rate?

Switzerland's VAT system, known as Mehrwertsteuer (MWST), Taxe sur la valeur ajoutée (TVA), or Imposta sul valore aggiunto (IVA), has a standard rate and reduced rates for specific goods and services. The standard Switzerland VAT rate is just 8.1%, and the reduced rates are 3.8% and 2.6%. There is also a zero VAT rate in Switzerland.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT rate	8.1%	Applies to most goods and services.
Reduced VAT rate	3.8%	Hotel accommodation.
Reduced VAT rate	2.6%	Food and beverages (excludes those provided in hotels), agricultural supplies, piped water, books, newspapers and magazines, medications, and cultural and sporting events.
Zero VAT	0%	Exports, and goods and services supplied to airlines.

Registering for VAT in Switzerland

The Swiss VAT registration threshold is CHF 100,000 in annual sales for resident businesses. For foreign companies operating in Switzerland, VAT registration becomes mandatory if their worldwide annual turnover is more than CHF 100,000 per annum. Businesses can also opt for voluntary VAT registration. There is no separate threshold for distance selling.

The Swiss Federal Tax Administration (FTA) provides an online platform for VAT registration and details of how to apply can be found there. The process takes approximately four weeks, after which your business will receive a Switzerland VAT number following successful registration.

Fiscal representative in Switzerland

All non-Swiss businesses operating in Switzerland will need a fiscal representative for VAT matters. This representative will be responsible for compliance with Swiss VAT regulations.

Switzerland VAT return filing and penalties

In most cases, Swiss VAT returns should be filed quarterly. However, they can be filed monthly if a business is in regular VAT credit. VAT returns must be submitted electronically through the FTA portal and are due 60 days after the end of the reporting quarter. Payments are due on the same day.

Late filing and missing payments will first result in a warning, after which penalties will be imposed. Interest of 4% will be levied for late payments, whereas reporting errors could result in fines of up to CHF 800,000.

Intrastat declarations

As Switzerland is not a member of the EU, Intrastat declarations are not applicable.

Reverse charge in Switzerland

The reverse charge mechanism in Switzerland applies mainly to B2B transactions, especially in cross-border dealings, shifting the responsibility of VAT reporting from the seller to the buyer.