The CHF 100,000 VAT Registration Threshold, Explained

Swiss VAT registration is triggered by a turnover threshold, not by a choice. Once you cross it, registration becomes mandatory.

The threshold

If your annual taxable turnover (excluding exempt supplies) reaches CHF 100,000, you must register for VAT with the Federal Tax Administration. Below that, you are exempt — but you can register voluntarily.

Taxable turnover means the total of your supplies subject to VAT, whether at the standard, reduced or special rate. Exempt supplies, such as certain financial and insurance services, do not count toward the threshold.

The CHF 100,000 figure is not the same as your total revenue. Turnover from exempt activities and, in some cases, from abroad is excluded from the calculation.

You must register within 30 days of the end of the month in which you cross the threshold. Registration starts from the moment the obligation arises, not retroactively from January.

• CHF 100,000 of taxable turnover triggers mandatory registration.
• Voluntary registration is possible below the threshold.
• The threshold applies to worldwide turnover, not just Swiss clients.

Why voluntary registration can help

If your clients are mostly VAT-registered businesses, voluntary registration lets you recover input VAT on your purchases — a real saving if your expenses carry significant VAT.

Voluntary registration also signals to larger clients that you operate at a professional standard. Some companies simply prefer to work with VAT-registered suppliers.

Once you register voluntarily, you commit to charging and filing VAT. You cannot register and deregister at will to chase a single refund.

Voluntary registration must be maintained for a minimum period. The Federal Tax Administration generally requires you to stay registered for at least one year before you can deregister.

Plan for it

Track turnover on a rolling basis rather than only at year-end. A single large contract can push you over the line unexpectedly.

If you cross the threshold, you must start charging VAT from the following supply onward. Clients who already received invoices cannot be back-charged.

Set a monthly reminder to review your turnover. Early awareness gives you time to update your invoicing templates and inform your clients before the switch.

After you register

Once registered, you add VAT to your invoices and begin filing periodic returns. Your first return covers the period from your registration date.

You also gain the right to reclaim input VAT on purchases made for your business from the registration date onward. Keep the supporting invoices.

Newly registered businesses often face a transitional question about which accounting method to use. Most start with the standard effective method.

facturio adds the correct VAT rate to your invoices the moment you enter your VAT number, and tracks the figures you need for your first return.