Swiss VAT 2026: Complete guide

The value added tax (VAT) is a federal indirect tax levied on the consumption of goods and services in Switzerland. For companies, VAT represents both a significant administrative obligation and a substantial financial issue. Rigorous VAT management helps avoid costly errors and, in some cases, achieve substantial savings through the judicious choice of return method.

This guide presents all the rules applicable to Swiss VAT in 2026: current rates, registration threshold, return methods, exemptions and reporting obligations. At AX-Fiduciaire, VAT management is included in all our accounting packages.

VAT rates in force in 2026

Since 1 January 2024, VAT rates in Switzerland have been increased to finance the AHV (popular vote of 25 September 2022). These rates remain unchanged in 2026:

History of VAT rates in Switzerland

It is useful to know the evolution of rates for retrospective returns or corrections:

To quickly calculate the VAT amount on your invoices, use our online VAT calculator.

Registration threshold: CHF 100,000

VAT registration is mandatory for any company whose annual turnover from taxable supplies exceeds CHF 100,000 in Swiss territory. This threshold applies to the company's worldwide turnover (including exempt supplies and exports).

Special threshold cases

• Foreign companies: foreign providers supplying services in Switzerland are subject to VAT from the first franc of turnover if it is generated in Swiss territory (no CHF 100,000 threshold for companies without a registered office in Switzerland since 2018)
• Associations and foundations: the threshold is CHF 150,000 for non-profit sports and cultural associations and public benefit institutions
• Public authorities: public authorities are subject to VAT for their entrepreneurial activities exceeding CHF 100,000

Voluntary registration

Even below the CHF 100,000 threshold, a company can voluntarily register for VAT. This can be advantageous in several situations:

• Significant investments: to recover input tax on the purchase of equipment, machinery or fit-out works
• VAT-registered clients (B2B): your business clients prefer invoices with VAT that they can deduct
• Start-up phase: a start-up often invests more than it invoices in the first months, generating a recoverable input tax surplus
• Professional image: a VAT number on invoices strengthens the company's credibility

Registration is done with the Federal Tax Administration (FTA) via the online form. We can carry out this procedure for you as part of setting up your company.

VAT return methods

Companies subject to VAT in Switzerland can choose between two return methods: the effective method and the net rate debt method (NRDM). The choice of method has a direct impact on the amount of VAT to be paid and on the administrative burden.

Effective method

The effective method is the standard method. It consists of calculating the VAT due as the difference between:

• Output VAT: VAT charged to customers on sales and services
• Input tax: VAT paid to suppliers on purchases and expenses

VAT due = Output VAT - Deductible input tax

This method requires precise recording of all VAT transactions and the retention of all compliant purchase invoices. It is mandatory for companies exceeding the NRDM thresholds.

Net rate debt method (NRDM)

The NRDM is a simplified method reserved for companies meeting the following conditions:

• Annual taxable turnover (including VAT) below CHF 5,005,000
• Annual tax debt below CHF 103,000

With the NRDM, the company applies a flat rate (set by the FTA according to the industry sector) directly to its gross turnover including VAT. There is no input tax deduction. NRDM rates range from 0.1% to 6.9% depending on the activity.

Examples of NRDM rates by sector (2026):

How to choose the right method?

The choice between the effective method and NRDM depends on your company's cost structure. Here are the main criteria:

At AX-Fiduciaire, we systematically simulate both methods for each new client to recommend the most advantageous one. This advice is included in our accounting packages.

VAT-exempt activities

Certain activities are exempt from VAT (true exemptions, without the right to deduct input tax):

• Healthcare: medical and paramedical services (doctors, dentists, physiotherapists, psychologists), hospitals, nursing homes
• Education: school, university, vocational training, language courses, continuing education
• Social: social assistance, childcare, assistance for the elderly or disabled
• Insurance: insurance and reinsurance operations, insurance brokerage
• Finance: interest on loans, credits, securities operations (trading excluded), investment fund management
• Real estate: rental and sale of property (except optional taxation of commercial leases)
• Culture and sport: cultural and sporting events organised by non-profit associations
• Games of chance: lotteries, betting, casinos (subject to a special tax)

Note the important difference between true exemption (no VAT charged, no input tax deduction) and export exemption (0% rate, with the right to deduct input tax). Exports of goods and certain services destined for abroad benefit from the 0% rate with full input tax recovery.

Reporting obligations and deadlines

Return frequency

The VAT return is in principle quarterly. The company can request:

• Monthly: recommended or mandatory for companies with a regular input tax surplus (exporters, significant investments)
• Semi-annual: possible on request for small companies with a limited volume of transactions

Filing deadlines

The VAT return must be filed within 60 days of the end of the accounting period. For a quarterly return:

Payment must be made within the same deadline. In case of late payment, the FTA charges default interest of 4.5% per year on the amount due. Systematically late filing can also result in fines.

Invoicing requirements

For input tax to be deductible, the invoice must mandatorily include:

• The name and address of the supplier
• The supplier's VAT number (CHE-xxx.xxx.xxx VAT)
• The date or period of the supply
• The description of the supply
• The amount of the supply
• The applicable VAT rate and the VAT amount

For low-value invoices (up to CHF 400 including VAT), the requirements are simplified: only the supplier's name, description, total amount including VAT and VAT rate are required.

Common VAT errors

VAT management is a source of numerous errors. Here are the most common ones we correct for our clients:

• Forgetting acquisition tax: purchases of services from foreign suppliers are subject to acquisition tax (reverse charge), which many companies fail to declare
• Input tax deduction on non-compliant invoices: an invoice without the supplier's VAT number does not entitle to deduction
• Applying the wrong rate: confusion between standard and reduced rates, particularly for food and beverages
• Failure to declare self-supplies: private use of company goods or services is subject to VAT
• Forgetting input tax adjustment: when the use of an asset changes (from business to private use), the deducted VAT must be adjusted

These errors can be detected during an FTA audit and result in tax reassessments plus interest. Professional support from our accounting team prevents these risks.

VAT and international operations

Companies carrying out cross-border operations must pay particular attention to VAT rules:

Goods exports

Exports of goods outside Switzerland are exempt at the 0% rate (export exemption). The company retains the right to deduct input tax on its purchases. Proof of export (customs document) must be retained.

Cross-border services

The place of supply of services is determined according to complex rules. In principle, B2B services (between companies) are taxable at the recipient's location. B2C services are taxable at the provider's location. Exceptions exist for property services, events, transport, etc.

Imports

Imports of goods are subject to import VAT, collected by the Federal Customs Administration (FCA). This VAT is deductible as input tax if the conditions are met.

Good to know: VAT management is included in all our accounting packages from CHF 149/month. Registration, periodic returns, reconciliation and choice of the optimal method: we take care of everything. Request a quote.