Swiss VAT key facts: rates, registration threshold, filing and foreign companies

Country reference

• Country: Switzerland (Wave 1 expansion country)
• Authorities: Federal Tax Administration (FTA)
• Topic: Value added tax: rates, liability, registration and filing
• Key date: Returns and payment due 60 days after each reporting period
• Law: Federal Act on Value Added Tax

Rates

• Standard rate: 8.1%.
• Reduced rate: 2.6%, for food (not alcoholic drinks), medicines, books, newspapers and magazines, plants, animal feed and, since 1 January 2025, menstrual hygiene products.
• Special rate: 3.8% for accommodation with breakfast in hotels and similar businesses.
• A vote on 29 November 2026 will decide whether the standard rate rises to 8.5% and the special rate to 4.0% from 2028.

Who must register

• A business is liable once turnover from taxable or zero-rated supplies reaches CHF 100,000 a year.
• For non-profit sports and cultural associations the threshold is CHF 250,000.
• Businesses below the threshold may register voluntarily.
• Registration is online with the FTA, within 30 days of the start of tax liability.

Foreign companies

• The CHF 100,000 test looks at worldwide turnover. A foreign company that reaches it and makes supplies in Switzerland is liable.
• Companies abroad that provide only exempt supplies, or services subject to the reverse charge, are not liable.
• A foreign business without a Swiss seat must appoint a representative domiciled in Switzerland. It can be any natural or legal person.
• The FTA no longer requires foreign businesses to provide security on registration.

Filing and payment

• The return must be filed and the tax paid within 60 days after the end of the reporting period, without being asked.
• Late payment interest runs automatically after the deadline, at rates the Federal Department of Finance sets each year. It is generally charged only above CHF 100.
• Since 1 January 2025, businesses with annual turnover of up to CHF 5,005,000 can apply to settle VAT once a year, as a simpler option than quarterly or half-yearly returns.

What to do now

• Foreign sellers: test worldwide turnover against CHF 100,000 before the first Swiss supply, not after.
• Diarise the 60-day deadline for each period. The return is due without any request from the FTA.
• Smaller businesses: consider annual settlement to cut the number of filings.
• Follow the 29 November vote if prices or contracts extend into 2028.

Our take

The Swiss threshold surprises foreign groups because it counts turnover everywhere, so a large company is liable from its first taxable Swiss sale. A regional group selling services or goods into Switzerland should settle the registration question at contract stage.