MWST (value-added tax)
A tax on companies' turnover. In Switzerland it becomes mandatory from an annual turnover of CHF 100'000 — below that, registration is voluntary. Depending on the method, it is settled quarterly or half-yearly with the Federal Tax Administration.
MWST (Mehrwertsteuer) is Switzerland's value-added tax on the goods and services a business supplies. Registration becomes mandatory once your annual turnover reaches CHF 100'000; below that threshold you can register voluntarily, which can pay off if you have significant input-tax-bearing costs. Since 2024 the standard rate is 8.1%, the reduced rate (food, books, medicines) 2.6% and the special rate for accommodation 3.8%.
Example: A consultant invoices CHF 50'000 of net fees in a quarter. At the 8.1% standard rate she charges CHF 4'050 in VAT, deducts the input tax on her business expenses, and pays the difference to the Federal Tax Administration (ESTV) — typically each quarter.
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About the glossary
When do I have to register for VAT in Switzerland?
As soon as your worldwide turnover from taxable supplies reaches CHF 100'000 in a year. You must register with the Federal Tax Administration within 30 days of becoming liable; below the threshold registration is optional.
What is the VAT rate in Switzerland in 2024?
The standard rate is 8.1%, the reduced rate (e.g. food, non-alcoholic drinks, books, medicines) is 2.6%, and the special accommodation rate is 3.8%. These rates have applied since 1 January 2024.