VAT in Switzerland: rates, calculations and how it works in 2026

The mechanism

Who actually pays VAT and how does it work?

The final consumer bears VAT. Registered businesses collect it on sales on behalf of the Confederation. Under the effective method, they can deduct VAT paid on purchases needed for their activity, provided the conditions are met.

Can you recover all VAT paid on purchases?

No. A business can deduct VAT only where the expense relates to an activity giving entitlement to deduction and it has proper supporting evidence. The private portion of an expense, or an expense relating to certain exempt supplies, is not automatically recoverable.

For example, certain healthcare, education, insurance and banking services are exempt without input tax credit. VAT on the associated expenses generally cannot be deducted. By contrast, a properly documented export is invoiced without Swiss VAT while generally retaining input tax deduction rights.

When invoicing customers, the business must also include the required information. Our guide explains how to issue a compliant invoice in Switzerland(in French).

Applicable rates

What are the VAT rates in Switzerland in 2026?

Goods and services are not all taxed at the same rate. The rates introduced on 1 January 2024 remain applicable in 2026. The rate depends on the precise nature of the supply, not simply the business’s sector.

Restaurants, takeaway sales and alcohol

A meal consumed on site is generally a catering service subject to 8.1%. Food sold as takeaway or delivered without catering services may qualify for the 2.6% reduced rate if transactions are correctly distinguished. Alcoholic drinks remain subject to the 8.1% standard rate.

Our article on VAT rates in Switzerland explains specific cases. Before configuring a till or invoicing software, always identify the precise nature of the supplies sold.

Video · Entreprendre en Suisse avec Romain

▶

The three Swiss VAT rates, on video

This video summarises the 8.1%, 2.6% and 3.8% rates and the main situations in which they apply.

Watch more tax videos →

Find more explanations of Swiss tax on the “Entreprendre en Suisse avec Romain” channel.

The calculation

How do you calculate VAT?

Calculations are straightforward once you distinguish a VAT-exclusive price from a VAT-inclusive price. Do not simply subtract 8.1% from a VAT-inclusive amount: VAT is already included, so the calculation base differs.

The registration obligation

VAT liability: which conditions apply to businesses?

A business is not automatically registered for VAT when it is formed. To determine whether registration is mandatory, examine its activity and relevant worldwide turnover.

1. Check the activity. Does the business independently carry out entrepreneurial activity aimed at generating sustainable revenue?
2. Identify relevant supplies. Certain supplies, particularly healthcare, education, insurance and banking, follow specific rules.
3. Calculate relevant worldwide turnover. The general threshold is CHF 100,000 per year.
4. Check exceptions. The threshold is CHF 250,000 for certain non-profit sporting or cultural associations run on a voluntary basis and certain charitable institutions.

The threshold concerns turnover, not profit. It applies regardless of the business’s legal structure(in French): sole proprietorship, LLC or corporation. For people starting alone, our guides also explain how to become self-employed in Switzerland and how to start a sole proprietorship(in French).

Voluntary registration below the threshold

A business below the threshold may choose voluntary registration. This can be worthwhile where it makes significant investments or mainly serves VAT-registered clients. In return, it must invoice VAT correctly, maintain suitable accounts and submit returns.

If in doubt, check the situation early. The authorities carry out VAT audits(in French), and late registration may require corrections to earlier invoices and returns.

Example: a Swiss consultancy business

You expect CHF 120,000 in consultancy services during your first twelve months. If this is reasonably foreseeable at launch and the services count towards relevant turnover, assess liability from the start. The threshold is not a band of sales you can systematically invoice without VAT.

Conversely, a business below the threshold generally should not charge Swiss VAT if unregistered. Nor can it deduct input tax like a registered business. Voluntary registration therefore deserves calculation, particularly if customers are private individuals.

The FTA registration process

How do you obtain a Swiss VAT number?

To obtain a VAT number, a business registers online with the FTA. The form asks, in particular, for the start date of liability, activity, actual or forecast turnover and preferred reporting method.

1. Confirm the VAT liability start date. It determines which invoices are affected and which VAT can be recovered.
2. Gather identifiers. Depending on legal structure, these include the UID, Commercial Register data or AVS number.
3. Choose the VAT accounting method. The effective method and net tax rate method do not produce the same result.
4. Submit the application and keep the confirmation. After processing, the business receives its VAT number and access to FTA electronic services.

The VAT number uses the business identification number (UID)(in French). It takes the form CHE-123.456.789 TVA. Our dedicated article explains how to obtain a Swiss VAT number(in French).

When business activity ceases, the company must also report the end of VAT liability. VAT deregistration(in French) is separate from the formalities needed to close an LLC or corporation(in French).

File and pay

How do you complete a Swiss VAT return?

VAT-registered businesses must submit regular returns to the FTA. Since 1 January 2025, returns have been submitted online. Accurate accounts must distinguish taxable turnover, exempt supplies with or without input tax credit, and international transactions.

The effective method

This method calculates VAT on sales and deducts eligible input tax. Reporting timing also depends on the accounting basis: agreed consideration (generally on invoicing) or received consideration (on payment, subject to authorisation). It requires detailed accounts but often suits businesses paying substantial VAT on purchases and investments.

Net tax rates

The net tax rate method simplifies calculation. The business still charges statutory rates to customers but calculates its liability to the FTA by applying its assigned rate to VAT-inclusive turnover. Subject to authorisation, it is available where annual taxable turnover including VAT does not exceed CHF 5.024 million and the tax liability calculated under this method does not exceed CHF 108,000. Our article on net tax rates(in French) explains the conditions and calculation.

Annual reporting since 2025

A business whose annual turnover does not exceed CHF 5.005 million may apply to submit one return per year. Access also depends on compliance with filing and payment obligations. This does not remove payments during the year: the FTA invoices advance payments. A newly registered business generally has 60 days after notification of its VAT number to request this frequency.

When and how do you pay VAT?

The return and payment are generally due within 60 days after the reporting period ends. For quarterly returns, this usually means 30 May, 29 August, 29 November and the end of February the following year. Check the exact deadline in your FTA portal. Payment uses the details provided by the FTA. At year-end, an annual VAT reconciliation(in French) between the bookkeeping, returns and annual accounts identifies differences before they become a problem.

International transactions

VAT on imports and foreign services

A foreign invoice without Swiss VAT does not mean the transaction escapes tax. Distinguish the physical import of goods from buying a service supplied from abroad.

Importing goods

The Federal Office for Customs and Border Security levies import tax, generally at 8.1% or 2.6%. The taxable base may include the goods’ value and incidental costs up to the destination in Switzerland.

A registered business can generally recover this tax as input VAT if the goods serve an activity giving deduction rights and it holds the import document issued in its name.

Services purchased abroad

Certain consultancy, licences, software or digital services supplied from abroad are subject to acquisition tax. The Swiss business must then declare VAT itself according to its circumstances. An unregistered business may become liable if relevant acquisitions exceed CHF 10,000 per year.

Practical situations are detailed in our article on acquisition tax(in French). Recording all foreign invoices simply as “no VAT” expenses is a common mistake.

Practical implications

VAT mistakes to avoid in your business

Common mistakes include confusing turnover with profit for the threshold, applying the reduced rate to all catering, forgetting acquisition tax or deducting the private portion of an expense. In most cases, the VAT principle is straightforward. Difficulties mainly arise from exceptions, the choice of method and international transactions. Sound management relies on regular checks:

• set the correct VAT codes for each type of sale and purchase;
• check invoices, credit notes and supply dates;
• retain export evidence and import assessments;
• document private-use portions and exempt activities;
• reconcile accounting turnover with returns;
• retain books and documents for the applicable period, generally ten years.

Where a discrepancy exists, a voluntary correction is generally preferable to discovery during an audit. Accounting organised around VAT requirements also simplifies returns and annual closing.

Frequently asked questions

FAQ: VAT in Switzerland

This guide references the rules and thresholds published by the Federal Tax Administration and theFederal Office for Customs and Border Security. Source article updated on 12 September 2026.