VAT for Freelancers: A Practical Guide

Most freelancers start below the VAT threshold, so VAT is a choice rather than an obligation — until their income grows.

Your situation

If you are below CHF 100,000 in taxable turnover, VAT is voluntary. Above it, it is mandatory. The real question for a freelancer is whether voluntary registration pays off.

Most freelancers begin their career well below the threshold, serving a mix of small clients. In that phase, staying exempt is the default and usually the right call.

The picture changes once you work for companies that are themselves VAT-registered. Charging VAT then costs them nothing, and your input VAT becomes reclaimable.

Your turnover for this purpose is your taxable revenue, not your profit. Even a modest business can approach the threshold if it invoices consistently.

• Below CHF 100,000: voluntary.
• Above CHF 100,000: mandatory.
• Decision depends on your clients and expenses.

When to register voluntarily

Register if your clients are VAT-registered businesses and you carry meaningful input VAT on your own purchases. Then you can reclaim that input VAT and your clients can reclaim yours.

The clearest trigger is buying expensive equipment, software or services. If your annual input VAT is significant, registration starts to pay for itself.

Consider your client base as well. If most are companies, adding VAT is painless for them and you unlock the reclaim. If most are private, it is a different story.

Some freelancers register to appear more established when pitching to larger clients. The signal can matter, but it should not be the only reason.

Keep it simple

Do not over-engineer your VAT setup. If you register, use the standard effective method first and only explore flat-rate schemes once you understand your numbers.

Automation is your friend. Software that calculates VAT, tracks input tax and prepares the figures for your return saves hours every quarter.

If the admin starts to outweigh the benefit, remember you can deregister once your turnover falls and stays below the threshold.

Getting registered

To register, you apply to the Federal Tax Administration with your business details and expected turnover. The process is straightforward for a solo freelancer.

You will receive a VAT number derived from your UID, with an MWST suffix. This number must appear on every invoice you issue while registered.

Decide your reporting period at registration — most freelancers choose quarterly. You can request a change later if your circumstances justify it.

facturio stores your VAT number, applies your chosen rate and builds the figures for your return, so registration does not mean more manual work.