- 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.
Source: rister.ch
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.
