Deregistering from Swiss VAT: When and How

VAT registration is not permanent. If your business shrinks below the threshold, or you close it down, you can — and should — deregister.

When to deregister

If your turnover falls below CHF 100,000 and is expected to stay there, you may apply to deregister. Closing the business entirely also requires deregistration.

Deregistration is also relevant when your activity changes to supplies that are exempt or outside the scope of VAT, so you no longer need the registration.

You cannot deregister on a whim. The Federal Tax Administration expects the lower turnover to be durable, not a single quiet quarter.

If you registered voluntarily, you must normally remain registered for at least one year before applying to deregister.

• Turnover drops below the threshold.
• Business closes or is sold.
• Activity changes to exempt supplies.

What happens on deregistration

You file a final return and may need to repay input VAT on any assets you still hold, since they were bought VAT-free. The Federal Tax Administration will confirm the effective date.

The repayment on remaining assets applies because those goods were purchased without the VAT cost you would otherwise have borne. It closes the loop on your registration.

The effective date of deregistration is set by the tax authority and determines when you stop charging VAT on new invoices.

After deregistration you revert to being a non-taxable person: no VAT on invoices, no returns, and no further input VAT reclaims.

Do not just stop filing

The formal application is made to the Federal Tax Administration, which then confirms the deregistration in writing. Until then you remain registered and liable.

Keep all records for the full retention period after deregistration. The authority can still review your final periods later.

Inform your clients when the change takes effect so they stop expecting VAT on your invoices. A simple note prevents confusion on both sides.

After deregistration

Once deregistered, issue invoices without VAT and remove your VAT number from your templates. Leaving it on suggests a registration you no longer hold.

Monitor your turnover after deregistration. If it climbs back over the threshold, you must re-register, and the cycle begins again.

If you deregistered because you closed the business, complete the final settlement with the tax authority and keep the confirmation letter safely.

facturio makes the transition a settings change: switch off VAT and your invoices drop the rate and number instantly, while your history stays intact.