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Tax Representation and Useful Tips for Entrepreneurs

  • VAT (value-added tax) is levied by the Swiss Confederation on services and products sold in Switzerland.
  • Companies can deduct input tax they have paid in the course of their business.
  • Different VAT rates apply, including 7.7% for normal cases and 3.7% for the accommodation sector.
  • A reduced rate of 2.5% applies to certain goods and activities.
  • Input tax deduction allows companies to deduct VAT already paid at previous stages of production.
  • All companies are subject to VAT, but those with turnover below certain thresholds are exempt.
  • Input tax can be claimed for investments made before taxable sales are made.
  • Companies with annual sales up to CHF 5 million and a tax burden up to CHF 100,000 can use the simplified net tax liability rate.
  • The net tax liability method simplifies tax accounting and reduces the frequency of statements.
  • Flat rates are based on annual sales and vary widely.
  • One third of Swiss SMEs use the simplified net tax liability calculation.
  • Companies must use the chosen method for a minimum period of time.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news