As a Swiss company, when do I have to charge Swiss VAT? 💼

What is Swiss VAT? 🤔

Swiss value-added tax (VAT) is a general consumption tax levied by the federal government. If you operate a business in Switzerland, you are required to charge VAT to your customers for the goods and services you sell. 🏢💰

Who pays Swiss VAT? 🎯

Swiss VAT applies to companies based in Switzerland under certain conditions:

• Non-profit institutions and charities with annual sales of at least CHF 150,000. 🏥💰
• Companies and public bodies with annual sales of at least CHF 100,000. The CHF 100,000 threshold includes income that is exempt from or outside the scope of VAT. 🏛️💸
• Organizations organizing one-off sporting, cultural or festive events generating at least CHF 100,000. 🎪🎭

How can I claim Swiss VAT? 📝

To obtain your Swiss VAT number, you can apply online. Be prepared with the following documents:

• An extract from the commercial register and a UID number.
• Social security number (if you are a sole proprietorship, partnership, association or foundation).
• Sales forecasts for the first financial year (for active companies, balance sheets and income statements for up to the last six financial years).
• Details of your fiscal representative and power of attorney form (for foreign companies). 🌐💼

You can access online registration here.

How much does Swiss VAT cost? 💸

The standard Swiss VAT rate is 7.7%. A special rate of 3.7% applies to accommodation services such as hotels and Airbnbs until the end of 2027. A reduced rate of 2.5% applies to certain categories, including foodstuffs, livestock, poultry, fish, seeds, live plants, medicines and certain media services. 🍎🏨📚

Is there an alternative declaration method? 🔄

Most companies use the actual method of calculating VAT. Under certain conditions, you can agree a flat rate with the tax authorities, based on your business sector. With this method, the VAT return must be calculated every six months. ⌛💹

Do I have to add Swiss VAT to my invoice to a customer based in the EU or abroad? 🌍

If your customer is based in the EU or abroad and your sale is considered an export, you cannot add Swiss VAT to your invoice. You may need to register for VAT in these countries or hire a fiscal representative to handle taxable transactions. 📋🇪🇺

When do I have to pay my VAT to the Swiss government? 🏦

You can choose to declare VAT monthly, quarterly or half-yearly, although most businesses opt for an annual return. 📅💰

How can I pay my Swiss VAT to the Swiss government? 💳

VAT payments to the Federal Tax Administration (FTA) can be made via the following contact details:

• PostFinance, Bern
• PC 30-37-5
• IBAN: CH60 0900 0000 3000 0037 5
• BIC: POFICHBEXXX

Don't forget to specify your VAT number and the reason for payment in notifications. 📝💸

How to manage VAT for invoices paid in euros or other currencies? 💱

Invoices paid in euros or other currencies must have the VAT portion converted into Swiss francs using the average monthly rate or the daily exchange rate published by the FCA. 🇪🇺💰

AboutEarny 🦉

Payroll management is a crucial but complex task when running a business. That's where Earny comes in. As a specialist Swiss payroll provider, we are committed to lightening your load with efficient and reliable payroll solutions. Thanks to our expertise in Swiss labor laws and regulations, we ensure that your payroll process is accurate, compliant and hassle-free. At Earny, we focus on payroll so you can concentrate on what you do best - running your business. Let Earny manage the complexities of your payroll in the Swiss landscape. 💼🔍

‍