Swiss VAT rates

VAT rates in Switzerland. (MWST – Mehrwertsteuer), (TVA – Taxe sur la valeur ajoutée), (IVA – Imposta sul valore aggiunto). What is the Swiss VAT rate? Which sales tax rates do they have in Switzerland? How do you invoice a customer in Switzerland and which tax should you apply? 

The Swiss Confederation is not part of the EU, nor is it part of the EU VAT area. Consequently, when dealing with Swiss companies, treat it as import or export outside the EU. This affects how you manage and book your VAT.

Change in VAT rates 1 January 2024

Normal VAT rate 7.7% to 8.1%
Reduced VAT rate 2.5% to 2.6%
Hotels 3.7% to 3.8%

According to the Swiss tax authorities

Which VAT rates do they have in Switzerland?

To answer that question, you must first come across how to spell the name of this country, by many considered the world’s most difficult-spelled nation. This nation also has four different languages and thus four different correct spellings of the country name, which means that the number of misspellings is vast.

The correct spelling in German is: Switzerland

But you can also see other correct spellings:

English spelling: Switzerland

French spelling: Suisse

Italian spelling: Svizzera

Romanian spelling: Svizra

(spoken in eastern Switzerland and is a dialect of Latin)

Latin spelling: Helvetia, Helvetica

Swiss VAT number

EU VAT Number Format: Switzerland is not included in the EU.

The Swiss format for mom registration number is: CHE000000000

You can also see UID000000000, UID refers to the organisation number that is the same as the VAT registration number. There were formerly 6-digit numbers, but they were discontinued in 2014.

What is the standard VAT rate in Switzerland?

Because this country believes in the individual and the companies before the state and the bureaucracy, you have relatively low taxes in most areas. This also applies to VAT which is far below the European neighbors. They have a streamlined VAT system with few exceptions, most services and products have a Swiss VAT rate of 7,7%.

VAT rate standard: 7.7%

(On January 1, 2018, the standard VAT fell from 8% to 7.7%)

Which reduced VAT rates are there in Switzerland?

Other VAT rates: 2.5% | 3.7%

VAT rate 3.7%: Hotel. (reduced to 3.7% in 2018)

VAT rate 2.5%: Books and e-books, newspapers, food and drink (except alcohol and at restaurant = 7,7%%), medicine, tap water.

(ebooks received VAT rate 2.5% in 2018, previously it was 8%. Now all books have the same VAT in Switzerland)

VAT exempt: Same as for EU Health Care, Banking, Insurance, Education, Real Estate.

(Liechtenstein is in a VAT union with Switzerland and has the same VAT and VAT rates)

*On this page, you will find VAT rates for EU countries*

VAT Recovery

Switzerland has not specified any special services that can not be repaid, but as the minimum amount of VAT that can be claimed is 500 CHF, just over X EUR, most of the usual expenses will disappear. on a business trip. It’s only bigger purchases that can be recycled.

Detailed information about VAT Refund is available only in French, German and Italian:

*Read more about VAT recovery for foreign companies in Switzerland*

Limit of distance selling to Switzerland

What threshold applies when selling to Swiss private customers? Since Switzerland is not a member of the EU, the distance selling thresholds listed in the EU do not apply. But you have a similar rule at a reasonably high amount to avoid small businesses suffering.

The threshold value for distance selling: 100000 CHF – Swiss francs (approx. 850K SEK)

If you sell goods to Swiss individuals for this amount, you must register for VAT in Switzerland.

*The calculation model changed in 2018 and is now based on global sales, read more here.*

Liechtenstein VAT rates

Liechtenstein is part of Schengen and the EU’s internal market (with restrictions) but is outside the EU VAT area because it is in a VAT union with Switzerland. Trade with Liechtenstein should, therefore, be treated as import/export with countries outside the EU just as for Switzerland.

Do you sell digital services to Switzerland?

If you sell electronic services to private customers in Switzerland, you have previously sold with your local VAT and rate, but unfortunately, Switzerland has followed in the footsteps of the EU introduced VAT on digital services sold from companies outside Switzerland to customers in Switzerland.

The standard rate for digital services sold to Swiss consumers is 7,7%. But Switzerland lowered the VAT rate on e-books to 2,5% starting 2018. This destination principle for digital files sold from web pages to private customers in Switzerland only applies when you have global sales above  100000 CHF. If you have a small company in Germany, you keep selling with your local German 19% VAT.

NOTE! As soon as you register for VAT in Switzerland, you must also start billing SWITZERLAND COMPANIES with Swiss VAT just as if it were domestic sales. This applies even if you are charging regular goods and services from your DE-VAT number, therefore it will not be a *reverse charge* transaction, which is a bit odd and unusual for this particular country. This applies to both goods and services and also e-services. Therefore, you should always invoice all sales to Swiss customers from your local CHE number as soon as you are VAT-registered there even though it was only meant for e-services.

How do you register for VAT in Switzerland?

You do not need to register for VAT, as you sell for over 100,000 CHF, i.e. the same limit as for distance selling to the country from companies abroad. This applies to both service and goods sales. As a small entrepreneur and freelancer, there are therefore good reasons to move here if you do not want to keep up with VAT and VAT declarations.

You must turn to the Local Business Register to register your business. You can, for example, contact the office in Zurich:

Handelsregisteramt des Kantons Zurich

Schöntalstrasse 5

Postfach

CH – 8022 Zurich

Tel: 0041 (0) 432597400

(8 – 11:30, 13 – 16:30)

Fax: 0041 (0) 432597490

(registry only)

Mail: kanzlei.hra(at)ji.zh.ch

It is also possible to hire different companies that handle everything from business startups, accounting, paperwork, and relocation to Switzerland.

How do you book sales to Switzerland?

If you sell goods or services to Switzerland from your German company, the sale is considered to be completed outside the EU (export outside EU).

How do you book purchases from Switzerland?

If you purchased a product or service from Switzerland, this counts as imports from outside the EU. It should accordingly be recorded as a regular import transaction, just as if you bought something from the USA or Asia.

How to get VAT on purchases in Switzerland?

If you wish to request a VAT Refund as a private person (must be at least 300 CHF).

*To reclaim VAT you have paid in Switzerland, please visit this page and read further: VAT Refund in Switzerland*

Where do I check the Swiss CHE number?

Here you check VAT registration number for Swiss companies in Switzerland

(UID = organisation number, FSO is the Swiss company)

What areas are exceptions from the EU VAT area?

Switzerland is, of course, exempt from the EU VAT area because you are not a member of the EU, but there are a lot more or less apparent exceptions that you can read more about here:

Here you can see the full list of EU VAT areas