VAT returns prepared and filed: value added tax for SMEs

VAT liability: when does a company have to register?

A company generally becomes liable for VAT as soon as it generates turnover of at least CHF 100,000 from taxable supplies within one year. A higher threshold applies to non-profit institutions and associations run by volunteers. Once you reach the threshold, you must register with the Swiss Federal Tax Administration (SFTA) within a short period.

Companies below the threshold can register voluntarily. This can pay off if you make large investments or work mainly for other VAT-registered companies, because you can then reclaim input tax. We check with you what makes sense in your situation.

VAT rates in Switzerland

Since 2024, three VAT rates have applied in Switzerland. Which rate applies depends on the supply – and some supplies are exempt from VAT, such as certain services in healthcare, education or the letting of residential property.

• Standard rate 8.1%: most goods and services
• Reduced rate 2.6%: including food, books, newspapers and medicines
• Special rate 3.8%: accommodation services

Effective method or net tax rate?

With the effective method, you account for the tax due on your turnover and deduct the input tax on your purchases and investments. With the net tax rate method, you multiply your turnover by a sector-specific rate – input tax is already factored in as a flat rate. This saves effort, but is only possible up to a certain turnover and tax limit and binds you for a minimum period.

Which method is cheaper depends on your cost structure: if you buy or invest a lot, the effective method is often the better choice. We calculate both options for you before you commit.

Reporting periods and deadlines

With the effective method you usually file quarterly, with the net tax rate half-yearly. Since 2025, smaller companies can also file annually under certain conditions and make instalment payments instead. The return must be filed and the tax paid within 60 days of the end of the period – otherwise default interest is charged.

We keep track of the dates for you and remind you in good time if receipts are still missing. We send you the return for approval before filing it.

Agreed or received consideration: when the tax arises

By default, you account on the basis of agreed consideration: the tax is due as soon as you have issued the invoice – even if the customer has not yet paid. On application, you can account on the basis of consideration received; then the date of payment counts. With long payment terms, this can ease your liquidity, but it requires carefully kept accounts receivable.

Turnover reconciliation and corrections

After the annual accounts, the turnover declared must be reconciled with the books. Any errors found must be corrected with a correction return – within a set period after the end of the financial year. Because we handle accounting, annual accounts and VAT from one source, this reconciliation is part of our process.

Typical VAT mistakes

These points most often lead to back taxes during audits:

• Input tax deducted without a proper invoice
• Private use, for example of vehicles, not corrected
• Services from abroad without acquisition tax
• Exempt and taxable turnover mixed
• Turnover reconciliation after the annual accounts forgotten

Frequently asked questions