Swiss VAT registration
VAT registration in Switzerland: thresholds, steps and your Swiss VAT number
Setting up a Swiss company does not automatically register it for VAT. Check when registration becomes compulsory, whether voluntary registration makes sense and how to apply to the Federal Tax Administration.
By Sarah Prieur · Swiss certified accountant
At a glance
Key takeaways
- The general threshold is CHF 100,000 of relevant annual worldwide turnover—not profit and not only Swiss sales.
- A new business may be liable from the outset if it expects to meet the threshold within the next twelve months.
- Notify the Federal Tax Administration within 30 days after VAT liability begins.
- A Swiss business identification number (UID/IDE) is not proof of VAT registration. Check the VAT status separately.
Who must register for Swiss VAT?
Start with the activities, then assess the turnover. A sole trader can be VAT liable, while forming an LLC does not automatically create an obligation to register. Identify each supply: goods, consultancy, training, rent, healthcare, financial services or another activity. Exclusions depend on specific conditions, not the business’s name.
The general compulsory-registration threshold is CHF 100,000 of relevant annual worldwide turnover. Supplies excluded from the scope of VAT are treated differently from taxable supplies and exempt supplies such as qualifying exports.
| Receipt or supply | Threshold analysis |
|---|---|
| Relevant Swiss sales and services | Generally included |
| Foreign supplies that would be taxable in Switzerland | Generally included |
| Exempt supplies, such as qualifying exports | Included under the relevant rules |
| Supplies excluded from the scope of VAT | Generally excluded from relevant turnover |
| Capital contribution, loan or other receipt without consideration | Do not automatically treat as a sale |
Example: a Swiss consultancy earns CHF 70,000 from relevant services to Swiss customers and CHF 50,000 from relevant services abroad. Its relevant turnover may be CHF 120,000. The fact that Swiss sales are below CHF 100,000 does not settle registration. Equally, it does not mean every franc of the CHF 120,000 must bear Swiss VAT: the place of supply is a separate analysis.
A CHF 250,000 threshold applies to specified qualifying non-profit, voluntarily run sporting or cultural associations and charitable institutions. It is not a universal association threshold. Public bodies have separate rules. Foreign businesses must also examine their Swiss supplies and the applicable exceptions; worldwide turnover alone is not enough to determine Swiss registration.
When does VAT liability start?
New businesses and specific business expansions
A Swiss business can be liable from the start if the circumstances indicate that it will meet the threshold within the following twelve months. Similar forecasting rules matter for developments such as taking over a business or opening a new branch.
For example, a consultancy starts in September with contracts supporting CHF 150,000 of relevant turnover over the next twelve months. It should not automatically wait until January or until CHF 100,000 has actually been received. If forecasts are uncertain, document the assumptions and review early results promptly.
Existing businesses previously exempt from registration
For an ordinary existing Swiss business previously below the threshold, compulsory liability generally starts after the financial year in which the threshold is reached. A business reaching it in the year ending 31 December 2026 therefore examines registration from the following period, unless circumstances require a different treatment.
The 30-day notification deadline
You must notify the Federal Tax Administration (FTA, or AFC in French) within 30 days after liability begins. This is an administrative deadline, not a VAT-free first month. Late registration can require reviewing earlier sales, agreed prices, missing returns and possible input tax deductions.
Voluntary VAT registration below CHF 100,000
An eligible business can waive its exemption from VAT liability and register voluntarily. The FTA allows this at the earliest from the beginning of the current tax period, subject to the applicable conditions.
Consider the customer base, planned investments, recoverable input VAT and administration. Business customers who can recover VAT react differently from private customers comparing final prices.
At the current standard rate of 8.1%, a CHF 1,000 fee excluding VAT becomes CHF 1,081 including VAT. If customers will only pay CHF 1,000 in total, the VAT is included in that sum and reduces the net revenue. Registration is therefore also a pricing decision.
Voluntary registration does not make VAT on every expense recoverable. Business use, excluded activities and the other deduction conditions still matter. Compare the effective method with any eligible net tax rate method (taux de la dette fiscale nette, TDFN) before applying.
How to register online: the practical steps
- Assess liability and the start date. Use your actual activities, accounts and credible forecasts.
- Gather the application data. Prepare the exact legal name, address, legal form, UID/IDE, activity description and financial information.
- Choose the relevant reporting arrangements. Consider the VAT method, accounting basis and who will manage returns.
- Submit through the official FTA registration service. Check the entity, dates and details before sending.
- Retain the confirmation and summary PDF. Respond to requests for clarification and keep the written registration decision.
| Information | What to prepare |
|---|---|
| Business identity | Legal name, address, legal form and UID/IDE |
| Activities | Precise description of goods and services |
| Relevant date | Start of activity and assessed liability date |
| Turnover | First-year forecasts or available prior-year accounts |
| Social insurance number | Where requested for the legal form concerned |
| Foreign business | Required Swiss fiscal representative information and declaration |
The FTA mentions the last six years’ accounts for existing businesses. Prepare the available relevant years to address possible earlier liability. Register the entity actually issuing invoices: a director’s personal registration does not replace the company’s.
If you find an error after submitting, contact the FTA rather than sending contradictory applications. Processing may require checks, and a newly incorporated company may not appear immediately in the UID data. Do not promise an active number within minutes. Keep evidence of the application and clarify how to invoice while it is processed.
Swiss VAT number versus UID: what is the difference?
The UID, called IDE in French, identifies the business. The VAT number uses it with the official suffix TVA, MWST or IVA. For example, CHE-123.456.789 TVA illustrates the format; it is not a number assigned here to your business or Karpeo. The English suffix “VAT” is not the authorised official suffix.
Check a supplier’s VAT status and relevant dates in the official UID register, not merely whether the business exists. This matters particularly for invoices relating to earlier periods.
A Swiss number is not an EU intra-community VAT number. Do not invent an EU identifier to satisfy a supplier’s form. Cross-border goods and services require their own VAT analysis. A formatting issue alone does not always settle a customer’s deduction entitlement, but suppliers should still issue correctly identified invoices.
What to do after registration
Update quotes, invoices and contracts. Determine the rate and place-of-supply treatment for each service, apply the correct start date and organise purchase evidence for input VAT.
Consider acquisition tax on certain foreign services even where the supplier’s invoice contains no Swiss VAT. A business outside ordinary VAT registration may have acquisition-tax obligations if the specific CHF 10,000 annual threshold is exceeded; this does not cover every foreign purchase indiscriminately.
VAT returns are electronic. Since 11 May 2026, the FTA portal brings registration and VAT return pro together; VAT return easy has been withdrawn. Set up company access and the accountant’s authorisations.
Follow both return and payment deadlines. Annual reporting has been available on application under conditions since 2025, but it does not eliminate advance payments. Reconcile VAT with the final annual accounts. Falling turnover or ceasing activity does not automatically cancel registration: deregistration has its own conditions.
For the underlying records, see our self-employed bookkeeping guide. If you are incorporating, our Swiss business structures comparison explains why legal form and VAT are separate decisions.
Frequently asked questions
Does forming a Swiss LLC automatically register it for VAT?
No. Assess its activities, relevant turnover and liability rules. Having a UID does not itself mean the company is VAT registered. Registration may be compulsory or voluntary.
Does the CHF 100,000 threshold cover only Swiss sales?
No. Relevant turnover is generally worldwide and includes qualifying supplies abroad. Some categories are excluded. Analyse the threshold separately from whether each sale bears Swiss VAT.
Can I get a Swiss VAT number before reaching CHF 100,000?
Yes. Registration may be compulsory from the start if the threshold is expected within the following twelve months, or voluntary if the conditions are met. It does not depend only on turnover already received.
Is a Swiss VAT number an EU VAT number?
No. The Swiss number and EU VAT identifiers are distinct. The CHE prefix alone does not determine the tax treatment of a cross-border transaction.
Can a business that is not VAT registered still owe VAT?
Yes. Certain foreign acquisitions may trigger acquisition tax where the specific CHF 10,000 calendar-year threshold is exceeded. This is a separate analysis and does not apply indiscriminately to every foreign purchase.
Sources and further reading
About the author
Sarah Prieur
Sarah is a Swiss certified accountant, partner and head of operations at Karpeo. She supports SMEs and self-employed clients with accounting, tax, VAT and payroll, and oversees the quality of client files and year-end accounts. Before Karpeo, she spent eight years in audit at PwC Switzerland, progressing to manager.
Get your VAT registration and reporting organised
Karpeo can review your activities, start date and reporting method, then help manage invoices, supporting documents and returns.
