VAT in Switzerland and How to Simplify Its Filing

In Switzerland, VAT (Value Added Tax) is a crucial part of business management. Whether you’re self-employed, an SME or a large corporation, understanding how it works, its rates and obligations is essential to avoid mistakes and penalties. In this article, we review the basics of Swiss VAT and show how the Digital Admin app can turn VAT returns into a simple, automated process.

What is VAT?

VAT is an indirect consumption tax applied to most goods and services sold in Switzerland.

• You collect VAT on your sales.
• You reclaim VAT paid on your purchases.
• You remit the difference to the SFTA through a periodic VAT return.

Who is concerned by VAT in Switzerland?

Any business generating more than CHF 100,000 in annual turnover must register for VAT and file regular returns. Some activities are exempt (financial, medical, cultural…), but voluntary registration is possible to recover input VAT.

Swiss VAT rates

• Standard rate (8.1% from January 2024): applies to most goods and services.
• Reduced rate (2.6%): basic foodstuffs, medicines, books…
• Special accommodation rate (3.8%): hotel services including breakfast.

VAT accounting methods

1. Effective accounting

You declare VAT based on issued and received invoices. Advantage: reflects actual economic reality. Disadvantage: more administrative work.

2. Cash accounting

You declare VAT only when you actually receive payment. Useful for SMEs with irregular cash flows.

3. Net tax rate (TDFN)

For businesses with annual turnover under CHF 5.024 million and tax due under CHF 108,000.

4. Flat rates (TaF)

For public bodies, associations or foundations. Simplifies VAT calculation.

Common challenges for businesses

• Manual entry of supplier and customer invoices.
• Incorrect VAT rates applied to products or services.
• Complex tracking of payments and receipts.
• Strict deadlines for filing the return.
• Lack of visibility on VAT payable or recoverable.

How Digital Admin simplifies VAT returns

1. Automatic VAT calculation

Swiss VAT rates are pre-set. Each issued or received invoice automatically calculates VAT due or recoverable.

2. Centralized tracking of sales and purchases

All your customer and supplier invoices are gathered in one place. The app automatically distinguishes collected and deductible VAT.

3. Ready-to-send reports

In just a few clicks, you generate a full VAT report compliant with Swiss requirements. Export to your accountant or directly to the SFTA.

4. Clear real-time dashboard

View your VAT payable or recoverable at any time. Anticipate your cash flow and avoid surprises.

5. Time saving and fewer errors

Less manual entry and fewer mistakes thanks to automation.

Conclusion

Managing VAT can quickly become a headache for Swiss businesses. Between rates, accounting methods and deadlines, the risk of error is real.

Thanks to the Digital Admin app, you drastically simplify your VAT return process: automatic data entry, instant calculations, ready-to-use reports and real-time visibility on your tax obligations.

💡 Try Digital Admin for free and see how it can transform your VAT and accounting management every day.