Invoicing and legal obligations for associations

Associations in Switzerland: what legal status and what consequences?

In Switzerland, an association is defined by articles 60 to 79 of the Code of Obligations (CO). It is a group of people pursuing a non-profit purpose, with its own statutes and bodies.

There are two types of associations: simple associations (not registered) and associations registered in the commercial register. Registration is optional, unless the association carries out commercial activity requiring double-entry bookkeeping.

This distinction has direct consequences on your accounting and tax obligations. A registered association must comply with stricter rules regarding bookkeeping and publication.

Concrete examples: a local football club often remains a simple association, whilst an NGO organising regular paid events generally registers in the CR for greater credibility.

Accounting obligations for associations under the CO

Since 2013, article 957 CO clearly defines the accounting obligations for associations. The determining threshold is that of annual income.

If your annual income remains below CHF 100,000, simple income-expenditure accounting (cash book) is sufficient. Beyond this threshold, you must keep double-entry bookkeeping with balance sheet and income statement.

These rules apply to all associations, whether registered in the commercial register or not. Registration, however, reinforces presentation and audit requirements.

To explore these obligations according to your legal form, consult our complete guide on legal accounting obligations in Switzerland.

Simplified accounting for small associations

For associations with annual income below CHF 100,000, income-expenditure accounting remains the standard. Concretely, this means keeping a simple cash book.

You record chronologically all income (membership fees, donations, event receipts) and all expenditure (purchases, expenses, any salaries). An Excel spreadsheet or handwritten notebook may suffice.

Minimum obligations:

• Record each transaction with date, description and amount
• Keep all supporting documents (invoices, receipts, bank statements)
• Retain these documents for a minimum of 10 years

This simplicity is perfectly suited to small sports clubs, neighbourhood associations or local cultural groups.

Complete accounting for large associations

As soon as your income exceeds CHF 100,000 annually, you must switch to double-entry bookkeeping. This obligation involves maintaining a balance sheet, income statement and notes.

Additional thresholds trigger audit obligations: beyond CHF 500,000 balance sheet total, 1 million turnover or 10 full-time employees, a limited audit becomes mandatory.

Associations registered in the commercial register must comply with these rules even more strictly, with publication of annual accounts.

Summary table:

• < CHF 100,000: income-expenditure accounting
• > CHF 100,000: double-entry bookkeeping
• > CHF 500,000 balance sheet: mandatory audit

Invoicing by associations: when is it mandatory?

Not all associations are required to issue invoices. This depends on the nature of your activities and your relationships with your members or clients.

No mandatory invoice for:

• Annual membership fees (a simple receipt is sufficient)
• Donations without consideration
• Purely voluntary activities between members

Invoice recommended or mandatory for:

• Sale of services or products to third parties
• Organisation of paid events open to the public
• Public subsidies requiring justification
• Any regular commercial activity

Even when not legally mandatory, invoicing improves traceability and facilitates your accounting. It also strengthens your credibility with partners.

Mandatory information on association invoices

When you issue an invoice in the name of your association, certain minimum legal information is required:

• Full name of the association
• Complete address of the registered office
• Clear description of the service or product
• Total amount payable
• Invoice issue date
• Invoice number (recommended for traceability)

If your association is not subject to VAT, you must add the mention "VAT not applicable" or "Not subject to VAT" on your invoices. This clarification avoids any confusion.

Example: A cultural association invoicing CHF 500 for an artistic service will clearly state "Total amount: CHF 500 (VAT not applicable)".

VAT and associations: registration rules and exemptions

Associations are subject to the same VAT rules as commercial businesses. The registration threshold is set at CHF 100,000 of annual taxable turnover.

Attention: only taxable turnover counts towards this threshold. Membership fees paid without direct consideration are generally outside the scope of VAT and are therefore not counted.

If your association regularly organises paid events, sells products or invoices services, this income is included in the threshold calculation.

To understand in detail the registration conditions and your obligations, consult our guide on the VAT registration threshold in Switzerland.

VAT-exempt activities for associations

Even if your association exceeds the CHF 100,000 threshold, certain activities remain VAT-exempt according to article 21 LTVA:

• Non-profit cultural activities (concerts, exhibitions, theatre)
• Sports events organised by non-profit institutions
• Closely related services: courses, conferences, educational training
• Medical care and health services
• Recognised public interest activities

These exemptions are subject to strict conditions. For example, a sports event must be organised by a recognised non-profit entity and the proceeds must be used exclusively to cover costs.

Concrete example: A tennis club organising a local tournament remains exempt if the proceeds are used solely to finance the event.

Voluntary VAT registration

Even below the CHF 100,000 threshold or with partially exempt activities, your association can choose voluntary VAT registration.

Potential advantages:

• Deduction of VAT paid on your purchases and investments
• More professional image with certain partners
• Simplification if you work with registered clients

Disadvantages to consider:

• Administrative burden: mandatory quarterly declarations
• Increased accounting complexity
• Commitment for several years

This decision must be carefully considered. For a detailed analysis, consult our article on the VAT exemption and voluntary registration.

Membership fees vs commercial services: how to distinguish them?

The distinction between membership fees and commercial services is crucial for VAT application. The Federal Tax Administration (FTA) applies precise criteria.

Membership fees: contributions paid without direct individualised consideration. They are outside the scope of VAT. Example: annual membership fee of CHF 100 simply giving member status.

Commercial services: exchange with direct and individualised consideration. They are subject to VAT if you are registered. Example: registration for a yoga course at CHF 300.

Borderline cases: If the membership fee gives access to substantial benefits (significant discounts, exclusive access), the FTA may reclassify it as taxable service.

Practical advice: Clearly separate these two categories in your accounting and on your documents.

Best invoicing practices for associations

Rigorous invoicing facilitates your management and strengthens your legal compliance. Here are the best practices to adopt:

Organisation:

• Clearly separate membership fees and commercial services in your documents
• Use sequential numbering for all your invoices
• Include QR-codes on your invoices to facilitate payments

Retention:

• Keep all documents for a minimum of 10 years
• Archive both issued and received invoices
• Keep payment receipts (bank statements)

Tools: Use invoicing software adapted to associations to automate numbering, payment tracking and VAT management if necessary.

BePaid for associations: simplifying invoicing and tracking

BePaid offers a solution adapted to the specific needs of Swiss associations, regardless of their size.

Useful features for associations:

• Creation of compliant QR-invoices to Swiss standards in a few clicks
• Automatic tracking of membership fee and service payments
• Automatic reminders for members late with payment
• VAT management if your association is registered
• Accounting exports to facilitate your bookkeeping

The free version (10 invoices and 5 clients per month) is perfectly suited to small associations. For larger organisations, the Premium version at CHF 20/month offers all features without limitation.

Discover how to easily manage VAT with our VAT management module.

Swiss associations, even non-profit ones, must comply with precise accounting and tax obligations. Depending on their size and turnover, they are subject to simplified or complete accounting, and may need to register for VAT from CHF 100,000 of commercial income. The distinction between membership fees and commercial services is essential to determine your obligations.

Clear and compliant invoicing protects your association legally and facilitates financial management. Mandatory information, sequential numbering and rigorous VAT management are not optional.

BePaid simplifies invoicing for Swiss associations: create compliant QR-invoices in a few clicks, manage your members as clients, track your payments and automate your reminders. Our integrated VAT management helps you remain compliant, whether you are registered or not. Try BePaid free and focus on your association's mission rather than on administrative paperwork.