Understanding Swiss VAT for Freelancers and SMEs
VAT (or MWST in German) is an indirect tax levied on consumption. Here's everything you need to know.
VAT Registration Thresholds in 2025
You are subject to VAT if:
- Your annual turnover exceeds CHF 100,000 (activity on Swiss territory)
- You import services from abroad > CHF 10,000/year
Voluntary registration: possible even below the threshold if you want to deduct VAT on your purchases.
Applicable VAT Rates in 2025
- 8.1%: standard rate (most goods and services)
- 3.8%: reduced rate (hotel accommodation)
- 2.6%: special rate (basic necessities, books, newspapers)
How to Declare VAT with ToBill
- Activate VAT in your account settings
- Set your default rates for each item/service
- ToBill automatically calculates VAT on each invoice
- Export your quarterly declaration in one click
VAT Deductions: What Is Allowed
You can deduct VAT paid on:
- Professional equipment and supplies
- Travel expenses (fuel, train)
- Office rent
- Computer equipment
- Continuing education related to the activity
Warning: entertainment expenses (client meals) are only 50% deductible.
VAT Declaration Deadlines
- Quarterly: for most SMEs (4 declarations/year)
- Biannual: if turnover < CHF 5 million and VAT due < CHF 100,000
- Annual: net tax debt rate method
ToBill sends you automatic reminders 7 days before each deadline.