VAT liability is not a matter of choice. It depends on three factors: your turnover, the nature of what you supply, and where that supply is deemed to take place. The check gives you an initial answer in a few questions.
VAT check · guidanceThresholds checked on 27 September 2026
CHF
This check is guidance and does not replace a review of your situation.
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What triggers liability
Turnover
A business whose turnover, in Switzerland and abroad, exceeds a threshold becomes liable. The threshold is higher for certain institutions, notably non-profit sports and cultural associations and public utility institutions.
CHF 100,000 of annual turnover, in Switzerland and abroad; CHF 250,000 for volunteer-run non-profit sports or cultural associations and public utility institutionsSource: Art. 10 para. 2 let. a and c VAT Act · checked on 27 September 2026
Buying services from abroad
A business that is not otherwise liable owes acquisition tax on certain services bought from foreign suppliers that are not registered for Swiss VAT, above an annual amount. Online advertising, software subscriptions and consultancy can all fall within it, and businesses can exceed the threshold without realising it.
more than CHF 10,000 of such services acquired in a calendar yearSource: Art. 45 para. 2 let. b VAT Act · checked on 27 September 2026
The nature of what you supply
Some supplies are excluded from the scope of the tax, others are exempt, and the two do not have the same effect on your right to deduct input VAT. This distinction is often misunderstood.
Where the supply takes place
A service supplied to a client established abroad is in principle not taxed in Switzerland, but the rule has exceptions depending on the nature of the supply.
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Two reporting methods, suited to different situations
The effective method
You declare the VAT you collect and deduct the input VAT you paid your suppliers. It is the standard method, and it suits businesses with significant purchases.
The net tax rate method
You apply a flat rate specific to your sector to your turnover, without detailing input VAT. Less administration, but it is only open below certain limits, and it commits you for a minimum period.
The choice is made at registration and can only be changed later under specific conditions
Depending on your cost structure, the difference between the two methods can amount to thousands of francs a year. We calculate it before you choose.
The net tax rate method
taxable turnover up to CHF 5,024,000 and tax up to CHF 108,000 a year; at least one tax period, and three years of the effective method before returning; ten rates from 0.1% to 6.8% (fiduciary services: 6.2%)Source: Art. 37 VAT Act; FTA Ordinance on net tax rates · checked on 27 September 2026
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What we do
Registration
With the choice of method costed in advance.
Periodic VAT returns
Filed on time, with the supporting records.
The annual reconciliation
Between your returns and your accounts, a check the tax authority carries out itself.
Corrections
Of any error identified, including for past periods.
Whether you are approaching the threshold or have already exceeded it, the situation can be resolved. A threshold already exceeded simply calls for prompter action.
