Get to Know More about Swiss VAT
When does a business need to be VAT registered in Switzerland?
A company in Switzerland needs to register for VAT if it:
performs a professional or commercial activity
acts in public under its own name
is targeted to have sustainable income from supplies of goods and services
has a turnover of at least CHF 100’000
A business in Switzerland needs to be registered for VAT from the date of incorporation if it is expected to have the turnover of CHF 100’000 in the first 12 months. Otherwise, it will have to be VAT registered in the following year after the turnover exceeds the VAT registration threshold of CHF 100’000.
What is VAT rate in Switzerland?
The standard rate for VAT in Switzerland is 7.7% which is very low in comparison to other European countries. Below are the various rates of VAT in Switzerland:
7.7% standard rate of VAT
2.5% reduced rate for basic human needs such as food and medicines
3.7% special rate for certain hotel services such as stays in hotel and breakfast
Update: as of 1st January, 2024, the following new VAT rates will apply:
Standard rate - 7.7% to 8.1%
Reduced rate - 2.5% to 2.6%
Special rate for accommodation – 3.7% to 3.8%
If you need assistance in Swiss VAT registration, please get in touch.