VAT

The Swiss Confederation collects a tax on consumption at every stage of production and distribution – VAT.

The VAT rates applied in Switzerland are the following:

• a normal rate of 8%
• a reduced rate of 2,5%%. This mainly applies to food, drink, medicines and press media not of an advertising nature.
• a special rate of 3,8% for the accommodation sector.

Swiss companies collect VAT on behalf of the Swiss State and they must have a VAT number. This number is composed of the business identification number (IDE).

Amedia Fiduciary will take care of the hassle of the administrative steps involved in registering your company for VAT.

A Swiss company or one that carries out a trade in the country must determine whether it is subject to Swiss VAT.

However, businesses with an annual turnover of CHF 100,000 in Switzerland may be relieved of the burden of collecting this tax.

Companies with a head office or a stable establishment in Switzerland, which are under a single management, can request that they be treated as a single taxpayer. This special status, a VAT group, can be set up at the start of any tax period.

By being in a VAT group, services supplied between the group companies are not subject to the tax.