VAT in Switzerland: registration threshold and affiliation obligations
Introduction
Are you launching your business or is your turnover growing? One question quickly arises: from what point must you register for VAT in Switzerland? The VAT registration threshold is a crucial element that every entrepreneur must master to remain compliant with Swiss tax legislation.
In Switzerland, VAT registration becomes mandatory as soon as your annual turnover exceeds CHF 100,000. But this threshold is not the only criterion to consider: certain activities benefit from exemptions, others from different thresholds, and voluntary registration can sometimes present advantages.
Understanding these rules helps you avoid costly mistakes and allows you to anticipate your invoicing and VAT obligations. This guide details the registration thresholds, the registration procedures with the FTA, and your obligations once registered. You will also find concrete practical cases to calculate your own situation.
📌 Summary (TL;DR)
VAT registration becomes mandatory in Switzerland from CHF 100,000 annual turnover (CHF 150,000 for non-profit associations). You must register with the FTA within 30 days of exceeding the threshold. Once registered, you charge VAT to your clients, submit periodic returns and respect the mandatory information on your invoices.
📚 Table of contents
What is VAT registration in Switzerland?
VAT registration means that you must charge value added tax on your services and products, then remit it to the Federal Tax Administration (FTA).
Concretely, you charge VAT to your clients and deduct the VAT paid on your business purchases. The difference is paid to the FTA via periodic returns.
Registration becomes mandatory as soon as your turnover exceeds a certain threshold. To understand all aspects of VAT in Switzerland, consult our complete guide on VAT and invoicing.
VAT registration thresholds
VAT registration depends on your annual turnover. The FTA has set precise thresholds that determine when registration becomes mandatory.
These thresholds vary according to the type of activity carried out. The calculation is based on the annual turnover generated in Switzerland, excluding VAT.
Three main situations exist: the general threshold for commercial activities, the specific threshold for non-profit organisations, and special cases related to exempt supplies.
General threshold: CHF 100,000 turnover
The standard VAT registration threshold is CHF 100,000 annual turnover. This amount applies to the majority of businesses and self-employed individuals in Switzerland.
The calculation is based on your total turnover generated in Switzerland, excluding VAT, over the last 12 months. As soon as you exceed this threshold, registration becomes mandatory.
Examples concerned: IT freelancer invoicing CHF 105,000, consultant reaching CHF 110,000, graphic designer exceeding CHF 100,000 annual turnover.
Warning: the threshold is calculated on a rolling 12-month basis, not only by calendar year.
Specific threshold: CHF 150,000 for associations and non-profit institutions
Associations, foundations and non-profit organisations benefit from a higher registration threshold: CHF 150,000 annual turnover.
This higher threshold recognises the particular nature of these organisations and their social role. It applies only to entities recognised as non-profit institutions within the meaning of the VAT Act.
Services falling within the association's main social, cultural or sporting activity are included in this calculation. Below CHF 150,000, registration remains optional.
Special case: exempt supplies
Certain supplies are exempt from VAT and do not count in the calculation of the registration threshold. These are mainly medical, educational and cultural activities.
Common exempt supplies: medical care, training courses, financial services, residential lettings, insurance services.
If you only provide exempt supplies, you are not subject to the VAT registration obligation, regardless of your turnover. However, you cannot recover VAT on your purchases.
When and how to register for VAT?
VAT registration follows a precise procedure with the FTA. The deadlines and procedures vary depending on whether registration is mandatory or voluntary.
Understanding the registration process allows you to anticipate your obligations and avoid penalties. The procedure is carried out online via the FTA portal.
Two situations arise: mandatory registration when you exceed the threshold, and voluntary registration if you remain below but still wish to be registered.
Mandatory registration: deadlines and procedure
You have 30 days after reaching the registration threshold to register with the FTA. This deadline is imperative and non-compliance can result in sanctions.
Registration is done via the FTA's online portal. You must provide your UID number (business identification number), your articles of association or commercial register registration documents, and information about your activity.
The FTA examines your application and assigns you a VAT number (CHE-XXX.XXX.XXX VAT). For all business start-up procedures, consult our guide on starting a self-employed activity.
Voluntary registration: is it advantageous?
You can register voluntarily for VAT even below the CHF 100,000 threshold. This option has advantages but also constraints.
Advantages: recovery of VAT on your business purchases (equipment, supplies, services), improved cash flow if you invest heavily, increased credibility with B2B clients.
Disadvantages: additional administrative burdens, obligation to submit periodic returns, more complex invoicing.
Voluntary registration is particularly interesting if you have significant investments at start-up or if you work mainly with businesses registered for VAT.
Your obligations once registered for VAT
VAT registration entails several legal and administrative obligations. You must adapt your invoicing, submit regular returns and respect the deadlines imposed by the FTA.
These obligations are strict and their non-compliance can result in fines. Fortunately, invoicing tools like BePaid considerably simplify day-to-day VAT management.
Two main areas require your attention: invoicing with mandatory information and submission of periodic returns.
Invoicing with VAT and mandatory information
From your registration, you must charge VAT on all your taxable supplies. Your invoices must contain precise mandatory information.
Mandatory information: your VAT number (CHE-XXX.XXX.XXX VAT), the amount excluding VAT, the VAT rate applied (8.1%, 3.8% or 2.6%), the VAT amount, the total amount including VAT.
BePaid automatically generates compliant invoices with all required information. Discover our VAT management feature to simplify your invoicing.
Periodic returns and deadlines
You must submit VAT returns to the FTA according to a defined periodicity. The frequency depends on your turnover: quarterly (turnover up to CHF 5 million) or half-yearly (special authorisation for small turnovers).
The submission deadline is 60 days after the end of each period. For example, for the 1st quarter (January-March), you have until 31 May to submit your return.
Two accounting methods exist: the effective method (VAT charged less VAT paid) and the flat-rate method (flat rates according to sector). To choose the most advantageous method, consult our comparison of VAT accounting methods.
Practical cases: concrete examples of threshold calculation
To better understand how the VAT registration threshold works, here are three practical cases representative of real situations encountered by Swiss self-employed individuals and SMEs.
These examples illustrate different activity profiles and concretely show how to calculate your turnover and determine when registration becomes mandatory.
Each case presents particularities that influence the threshold calculation and the timing of registration with the FTA.
Case 1: Freelance graphic designer with growing turnover
Sophie starts her self-employed graphic design activity in January 2023 with a turnover of CHF 60,000 in the first year. In 2024, her business develops and she reaches CHF 105,000 turnover.
Calculation: Sophie monitors her turnover over a rolling 12-month period. In October 2024, she notes that her turnover over the last 12 months exceeds CHF 100,000.
She must register with the FTA within 30 days of exceeding the threshold, i.e. before the end of November 2024. Registration takes effect retroactively from the beginning of the quarter in which the threshold was exceeded.
Case 2: Consultant with international clients
Marc is a strategy consultant. He generates CHF 80,000 turnover with Swiss clients and CHF 40,000 with foreign clients (export services).
Threshold calculation: Only turnover generated in Switzerland counts towards the registration threshold. Services provided abroad (place of destination outside Switzerland) are not taxable in Switzerland.
With CHF 80,000 Swiss turnover, Marc remains below the CHF 100,000 threshold and is not obliged to register. However, he can choose voluntary registration.
Case 3: E-commerce with strong seasonality
Laura runs an online Christmas decoration shop. Her annual turnover is CHF 120,000, but 80% is generated between September and December.
Threshold management: Even with strong seasonality, it is the turnover over a rolling 12-month period that counts. As soon as Laura exceeds CHF 100,000, she must register within 30 days.
Registration takes effect at the beginning of the relevant quarter. Laura will have to charge VAT even during quiet months. She can choose the accounting method most suited to her situation.
Frequently asked questions about VAT registration
What happens if I exceed the threshold but do not register?
You risk fines and will have to pay retroactively the VAT not charged. The FTA can go back up to 5 years.
Can I deregister if my turnover falls below the threshold?
Yes, if your turnover remains below CHF 100,000 for a complete year, you can request deregistration. The FTA examines your request.
Does the threshold include VAT?
No, the threshold calculation is always based on turnover excluding VAT.
Must I count my foreign sales?
No, only supplies taxable in Switzerland count towards the registration threshold.
How long does it take to obtain the VAT number?
The FTA generally processes applications within 2 to 4 weeks after receiving the complete file.
VAT registration in Switzerland follows precise rules: CHF 100,000 turnover for standard businesses, CHF 150,000 for associations and non-profit institutions. As soon as you exceed this threshold, you have 30 days to register with the FTA. Voluntary registration remains possible below these amounts, but it implies a minimum commitment of three years.
Once registered, your obligations are clear: invoice with VAT respecting mandatory legal information, submit your periodic returns and remit the VAT collected. Administrative complexity increases, but you also recover VAT on your business purchases.
To simplify your VAT invoicing and remain compliant with Swiss requirements, BePaid automatically manages your VAT calculations, generates compliant QR-invoices with all mandatory information and allows you to export your data for your returns. Test the platform free of charge with 10 invoices and 5 clients to discover how to simplify your administrative management.
