​

​

​

Introduction

​

VAT is a tax on consumption and an important source of revenue for the state. It is paid by consumers but levied on businesses.

The price that customers pay for goods and services already includes value-added tax. The business selling the goods or providing the service collects the VAT and gives it to the state.

​

If a business has to buy other products or services (inputs) in order to produce their own goods or provide their own services, it can deduct the VAT paid for them from the VAT it has received from its customers and has to send to the state. This is called an input tax deduction.

 

Rates of VAT

​

There are three different VAT rates in Switzerland:

​

• Standard Rate 7.7% - (Services, Alcohol Etc)

​

• Special Rate 3.7% - Accommodation services (overnight stays with breakfast) in the hotel and accommodation business (e.g. letting of holiday apartments) are subject to a rate of 3,7 %.

​

• Reduced Rate 2.5% applies to:

​

• A reduced rate of 2,5 % applies for certain categories of goods and services, particularly:

• Foodstuffs (except alcoholic beverages) according to the Foodstuffs Act of 20 June 2014 (exception: the normal rate applies for foodstuffs that form part of restaurant services);

• Cattle, poultry, fish;

• Seeds, living plants, cut flowers;

• Grains;

• Animal feed and fertilizer;

• Medications;

• Newspapers, magazines, books and other printed products without advertising character of the kinds to be stipulated by the Federal Council;

• Electronic newspapers, magazines and books without advertising character of the kinds to be stipulated by the Federal Council;

• Services of radio and television companies (exception: the normal rate applies for services of a commercial nature).

​

There are also items that are exempt from VAT such as Education, Health, Rent from property

​

Registration Threshold

​

Businesses based in Switzerland  -  Annual turnover greater than CHF 100,000 must register and pay value added tax. They must register with the Federal Tax Administration and account for their sales annually. When they register, they are given a VAT number.

​

Businesses based outside Switzerland that make sales in Switzerland - Annual turnover greater than CHF 100,000 must register and pay value added tax. They must register with the Federal Tax Administration and account for their sales annually. When they register, they are given a VAT number.

​

Event Organisers - Organisers of one-off sports, cultural or other events (e.g. village or street festivals) are required to charge VAT. This applies if they earn at least CHF 100,000 from the sale of food and drink, advertising, etc.

​

Clubs - Charitable institutions or non-profit associations that are run on a voluntary basis must register for VAT if they have a turnover of CHF 250,000 or more.

​

​​

​

​

​

​

​

​

​