Swiss VAT / MWST
Swiss VAT: rates, registration, and obligations.
8.1% standard. CHF 100k threshold.
Switzerland's Mehrwertsteuer (MWST / TVA / IVA) is governed by the Federal Act on Value Added Tax (MWSTG). The standard rate rose to 8.1% on 1 January 2024. Registration is mandatory above CHF 100,000 annual worldwide turnover (MWSTG Art. 10); voluntary registration is available from the first day of business. Foreign companies supplying Swiss customers above the global threshold must register from the first franc of Swiss supply.
8.1%
Standard VAT rate (2024)
CHF 100k
Registration threshold
2.6%
Reduced rate
Quarterly
Default filing cycle
MWST Rate Schedule
Swiss VAT rates
in force from 1 January 2024
Switzerland raised its VAT rates on 1 January 2024 under an MWSTG amendment approved by national referendum. The previous standard rate of 7.7% no longer applies. Any content citing 7.7% as the current Swiss VAT rate is outdated.
Standard rate
Most goods and services supplied in Switzerland
MWSTG Art. 25 para. 1
Reduced rate
Food (excl. restaurant/takeaway), non-alcoholic beverages, books, newspapers, magazines, medicines, agricultural products
MWSTG Art. 25 para. 2
Special rate (accommodation)
Hotel and other accommodation services (excluding meals, spa, ancillary services)
MWSTG Art. 25 para. 4
Zero rate
Exported goods and services (taxable at 0%, with input tax recovery — distinct from exempt supplies)
MWSTG Art. 23
Exempt vs. zero-rated: an important distinction
Zero-rated supplies (e.g., exports) are taxable at 0% — the supplier charges no VAT but retains full input tax recovery rights on related costs. Exempt supplies (MWSTG Art. 21 — financial services, insurance, healthcare, most real estate) carry no output VAT charge but also no right to deduct input tax on related costs. This distinction is critical for holding companies and financial-services entities: a pure holding company making only exempt supplies cannot recover Swiss VAT on its management fees, legal costs, or professional services.
Key Data
Swiss VAT Rates (Since 1 Jan 2024)
MWSTG Art. 25 — rates applicable to supplies in Switzerland
8.1%
Standard rate
Applies to most goods and services supplied in Switzerland.
2.6%
Reduced rate
Food, books, newspapers, medicines, agricultural products.
3.8%
Accommodation rate
Hotel and other accommodation services (excl. meals and ancillary services).
0%
Zero rate (exports)
Exported goods — taxable at 0% with full input tax recovery.
Registration Rules
When must a company register
for Swiss VAT?
Mandatory registration — domestic businesses
CHF 100,000 worldwide taxable turnover per year
A Swiss company (AG, GmbH, or other form) must register for VAT with ESTV when its worldwide annual taxable turnover first reaches CHF 100,000 (MWSTG Art. 10). New companies can estimate projected turnover — registration should occur before the threshold is crossed in practice.
MWSTG Art. 10
Mandatory registration — foreign businesses
Worldwide turnover ≥ CHF 100,000 + any Swiss supply
Foreign companies (including e-commerce and digital-service providers) with worldwide turnover exceeding CHF 100,000 that make any taxable supply to Swiss-based customers are liable from the first franc of Swiss-sourced revenue. No domestic revenue threshold applies to non-residents.
MWSTG Art. 10 para. 2
Voluntary registration
No minimum turnover
A business with turnover below CHF 100,000 may voluntarily register for VAT to recover input tax (Vorsteuerabzug) on business expenses. Strategically useful at formation stage: a newly incorporated AG or GmbH with significant set-up costs (equipment, office fit-out, professional fees) can register voluntarily to reclaim input tax from day one.
MWSTG Art. 11
De-registration threshold
Annual tax due below CHF 10,000 [VERIFY]
A registered business may apply to deregister if annual turnover falls and the resulting tax liability drops below the de-minimis threshold. De-registration on company dissolution requires ESTV clearance as part of the OR liquidation procedure.
MWSTG Art. 14 [VERIFY]
Exempt Supplies
Exempt and excluded supplies
no VAT charged, no input tax recovery
Exempt without input tax recovery (MWSTG Art. 21)
- —Lending and financial services (banking, loans, deposits)
- —Transfer and management of participations (holding company activities)
- —Insurance and reinsurance premiums
- —Healthcare and medical services
- —Education and cultural services
- —Sale and lease of real estate (with opt-in option)
Exempt supplies under Art. 21 carry no right to deduct input tax on related costs. A holding company making only exempt supplies (dividends, interest) cannot recover Swiss VAT on its management fees or professional costs unless it opts into VAT for specific activities.
Excluded from VAT scope (MWSTG Art. 18)
- —Dividends and share of profits (not a supply)
- —Damages and insurance settlements
- —Non-business activities (private use)
Excluded supplies are outside the scope of MWST entirely — neither taxable nor exempt. No VAT is charged and no input tax may be deducted on directly related costs.
Compliance
VAT filing cycles
and practical obligations
MWST filing reference — ESTV portal (estv.admin.ch)
Standard filing period
Quarterly
Default for most registered businesses. Returns submitted and tax paid within 60 days of period end via the ESTV online portal (estv.admin.ch).
Monthly filing
On application
Available for businesses with large input tax positions (e.g., significant capital expenditure) or on ESTV approval. Facilitates faster input tax recovery.
Annual filing (flat-rate method)
On application
Available for small businesses using the net-tax-rate or flat-rate method (Saldosteuersatzmethode). Simplifies reporting but may not reflect actual liability precisely.
Annual reconciliation
Always required
Even where quarterly returns are filed, an annual reconciliation must be submitted within 180 days of the financial year-end to reconcile the declared figures against the full-year accounts.
VAT number format
CHE 123.456.789 MWST
Swiss VAT numbers use the UID (Unternehmens-Identifikationsnummer) with the MWST suffix. The same company number appears in the commercial register (HR suffix) and as a VAT identifier (MWST suffix). Verify via the ESTV online UID register or zefix.ch.
FAQ
Frequently asked
questions
Precise answers to the most common questions about forming a company in Switzerland. For specific advice on your structure, book a free consultation.
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