Swiss VAT: what to check before registration
A checklist before your business starts charging VAT.
Check the activity, not only the bank balance
VAT registration is a separate question from choosing a legal form. Before changing your invoices, clarify what you sell, where your business operates and which turnover is relevant.
Understand the general threshold
For an ordinary business, the general exemption threshold is CHF 100,000 of relevant annual worldwide turnover. Supplies exempt without credit are excluded from that calculation. Special thresholds and exceptions exist, so the number alone does not settle every case.
Prepare a useful overview
Our suggested preparation is a table showing each activity, customer location, invoiced revenue and expected revenue. Keep Swiss and foreign transactions identifiable. Include the start date and any planned expansion.
A new business may need an early assessment
Do not automatically wait for the year-end accounts. At the start of an activity, expected relevant turnover over the following twelve months can affect when liability begins. Discuss the forecast and the appropriate registration date before applying VAT to invoices.
Questions to bring to your accountant
Which supplies count? Does an exemption apply? Is voluntary registration worth considering? Which reporting method is available and appropriate? How should invoices change? These questions need the facts of your business, not a generic template.
Your next step
Send us a short description of your activity, business location and estimated turnover. Avoid attaching confidential customer files to the initial enquiry. We can discuss the information needed for a VAT review.
Official reference: Federal Tax Administration: VAT tax liability
General information. The appropriate steps depend on your circumstances.