Value-added tax

Value-added tax (VAT) is a levy on consumption charged solely by the Swiss government at all stages of production and distribution. VAT is payable by companies that provide services in Switzerland, when articles are imported, and to the buyers of services provided by companies based outside Switzerland.

The following rates of VAT are applied in Switzerland:

  • General: 8.0%
  • For the hotel sector (including breakfast): 3.8%
  • For foodstuffs and non-alcoholic beverages, books, newspapers and magazines, medicines, sporting and cultural activities (everyday consumer goods): reduced rate of 2.5%

VAT is collected by means of a system of self-assessment. Shopkeepers, tradesmen, manufacturers and service providers are required to determine their tax liability themselves and notify the Federal Tax Administration (FTA), if the relevant conditions are met (online registration).

VAT liability criteria

Essentially all enterprises are liable for VAT, no matter what their legal form. Due to the not inconsiderable administrative burden for both the state and the enterprise, a turnover threshold of SFr 100,000 has been set. If its annual turnover does not exceed this threshold, an enterprise is not required to pay value-added tax. However, not paying value-added tax also means not being able to deduct input tax either.

Contact

Administration fédérale des contributions
Division principale de la TVA
Schwarztorstrasse 50
3003 Berne
Suisse

Fax : ++41 31 325 71 38
E-mail contact

www.estv.admin.ch

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