VAT (value added tax) is often a source of confusion for self-employed individuals and sole traders in Switzerland. This guide explains the essential rules for 2026, without jargon.
Am I subject to VAT?
In Switzerland, VAT registration is mandatory as soon as your annual turnover exceeds CHF 100,000 from taxable supplies on Swiss territory.
Below this threshold, you are in principle exempt — you invoice without VAT and have no declaration to file with the Federal Tax Administration (FTA/ESTV).
Voluntary registration
You can choose to register for VAT even below the threshold of CHF 100,000. This can be advantageous if you have significant business expenses on which you wish to reclaim VAT (equipment, software, office costs).
Swiss VAT rates in 2026
Three rates have been in force since 1 January 2024:
- 8.1% — standard rate: applies to the majority of services
and the sale of non-food goods
- 2.6% — reduced rate: foodstuffs, non-alcoholic beverages,
books, newspapers, medicines
- 3.8% — special accommodation rate: hotels, holiday apartments,
short-term accommodation
These rates were increased on 1 January 2024 to fund the development of the AHV/AVS (AHV 21 reform).
Invoicing without VAT
If your turnover is below CHF 100,000, you invoice without VAT:
- No VAT number on your invoices
- No mention of a VAT rate
- No periodic filing with the FTA/ESTV
Important point regarding QR invoices: if you issue a QR invoice, the VAT field must remain blank. Do not enter 0% — this would imply a nil VAT return, which is different from exemption and can create administrative confusion.
Invoicing with VAT
Once registered for VAT, each invoice must mandatorily include:
- Your VAT number in the format CHE-xxx.xxx.xxx VAT
- The VAT rate applied (8.1%, 2.6% or 3.8%)
- The VAT amount shown separately from the net amount
- The calculation basis (amount excluding tax)
Example for a consulting service at CHF 1,000 net:
- Net amount: CHF 1,000.00
- VAT 8.1%: CHF 81.00
- Total including VAT: CHF 1,081.00
Input tax deduction
This is one of the main advantages of VAT registration: you can reclaim the VAT paid on your business purchases.
Examples of reclaimable VAT:
- Computer equipment and software
- Office and rental costs
- Business travel expenses
- Professional training
- Professional subscriptions (including Boost My Bizz)
For many self-employed individuals with significant expenses, the input tax deduction more than offsets the administrative cost associated with quarterly VAT returns.
VAT returns
VAT returns are filed online via the ESTV SuisseTax portal, generally every quarter (effective method) or once per year (net tax rate method, NTRM — recommended for small businesses).
The net tax rate method (NTRM)
This simplified method is often advantageous for self-employed individuals with turnover below CHF 5.02 million:
- A single flat rate according to your sector of activity
- Only two returns per year
- Simplified VAT accounting
Consult your accountant to find out whether this method is suited to your business.
Boost My Bizz and VAT
Boost My Bizz automatically manages all three Swiss VAT rates (8.1%, 2.6%, 3.8%) on your invoices and quotes. You can also issue invoices without VAT if you are not registered.
The export of your VAT data in a format compatible with your accountant is available directly from the Treasury module — ready to be handed to your bookkeeper for your quarterly return.