VAT deregistration in Switzerland: conditions, deadlines and final returns

What deregistration changes

Deregistration ends a business’s entry in the VAT register from a specified date. It may follow cessation of activity or, on request and subject to conditions, turnover falling below the relevant threshold. A continuing business that does not apply can remain voluntarily registered.

Leaving the register does not eliminate the final return, adjustments or record-retention duties. It also does not automatically close the business in the commercial register. A UID business identification number and VAT status are distinct, as explained in Swiss VAT registration.

When can a business leave the register?

Turnover below the relevant threshold

A continuing business may request deregistration at the end of the first tax period below the threshold if it can reasonably expect to remain below it in the following period. There is no general requirement to wait for two complete low-turnover years.

The ordinary threshold is CHF 100,000 in relevant worldwide turnover, not profit or Swiss cash receipts alone. Special thresholds and rules apply to certain associations and public-benefit institutions.

Example: turnover of CHF 82,000 with a credible CHF 85,000 forecast for the next period may support deregistration if the other conditions are met. A signed contract bringing expected turnover to CHF 140,000 points to a different conclusion despite the past decline.

Stopping activity or liquidating a company

The final trading day, completion of outstanding services, stock sales and the end of liquidation operations may differ. Closing a shop on 30 September does not automatically end every VAT transaction that day. Equipment sales may remain taxable.

For a company in liquidation, liability ends on completion of the liquidation under the applicable rules. The dissolution decision or addition of “in liquidation” to the name is not enough. Coordinate VAT with company liquidation, asset disposals and final accounts.

Foreign businesses

Specific rules apply to businesses based abroad. The FTA identifies the end of the calendar year in which the last supply in Switzerland was made. Review outstanding transactions and the tax representative’s role rather than simply using the last day physically spent in Switzerland.

The 30-day and 60-day deadlines

Articles 14 and 66 of the VAT Act and the FTA procedure govern these distinctions. The deadlines are not alternatives from which to choose. For a calendar-year tax period, the turnover-based request is made at the beginning of the following year; establish the exact applicable deadline.

Without a request based on reduced turnover, the business is regarded as waiving exemption from liability. It cannot simply stop charging VAT or filing returns.

Prepare a usable application

State the reason and requested effective date, VAT number, business contact details and representative. Use the current FTA channel or instructions. A note to your accountant is not a notification to the authority.

This is a preparation method, not an exhaustive list for every case. Keep the request and confirmation, then update the accounting calendar, responsibilities and invoicing settings from the established effective date. Do not stop charging VAT merely because the request has been sent.

Complete the final return and review assets

Review invoices, advances, credit notes, outstanding balances and asset sales under the applicable calculation method and reporting basis. Cash-basis and invoice-basis reporting do not treat every outstanding item identically. Coordinate year-end accounts and the VAT reconciliation so amounts are neither omitted nor counted twice.

Changes in asset use

Under the effective method, an input-tax adjustment may be required when deduction conditions cease to be met, including for assets retained after deregistration. The calculation depends on use, tax originally deducted and residual-value rules.

Deregistration is not always financially neutral. Quantify the effect of recent major investments. Equally, do not mechanically apply VAT to the original purchase price of every asset: a computer, stock and real estate may need different treatment, and an absence of an original deduction also matters.

Net tax rates

Distinguish deregistration, liquidation and a change of method. Since 2025, transitions between the effective and net tax rate methods include residual-value adjustment rules. Review the asset and method history rather than relying on an old simplification. The net tax rate method requires its own analysis.

Obligations after deregistration

Update quotes, invoices, subscriptions and commercial documents. VAT charged without entitlement can create a tax obligation. For corrections to earlier supplies, do not automatically replace the original rate with zero: examine the original transaction and the nature of the correction.

Retain VAT books and evidence for the statutory periods: generally ten years, with particular twenty-year rules for relevant property documents and effects linked to limitation. Export records, attachments and reconciliations before closing a software account. An inaccessible archive cannot support a previous deduction.

Monitor renewed or growing activity: deregistration is not a permanent exemption from future registration. Certain foreign purchases can still trigger acquisition tax for a non-registered business. Earlier periods can also remain subject to a VAT audit.

Selling or transferring the business

A business sale, asset transfer or restructuring can involve particular rules, including the notification procedure under Article 38 of the VAT Act. Do not automatically treat a transfer as closure with assets taken into private use.

Review the contract, successor, assets and intended future use together. Establish who takes over relevant rights, obligations and records before signing. A general clause stating “excluding VAT” does not itself determine the statutory treatment.

Frequently asked questions