Switzerland has one of the lowest value-added tax (VAT) rates in Europe at 8.1%, compared with the average of 21.6% in EU countries. But with a global turnover threshold and specific rules for foreign companies, Swiss VAT rules can create obligations even for businesses without a local presence.

Below, we explain how the Switzerland VAT rate works, including registration requirements, compliance rules, and VAT refunds.

What’s in this article?

• What is the Switzerland VAT rate?
  
• What are the different VAT rates in Switzerland?
  
• What is a Swiss VAT number?
  
• Who needs to register for VAT in Switzerland?
  
• How can businesses stay compliant with Swiss VAT?
  
• How do VAT refunds work in Switzerland?
  
• How Stripe Tax can help
  

What is the Switzerland VAT rate?

Switzerland’s standard VAT rate is 8.1%, though some goods and services are eligible for reduced rates or zero rates. Switzerland has one of the lowest standard VAT rates in Europe, which is part of a long-standing policy choice to keep consumption taxes relatively light while funding the state through a broader mix of taxes and social contributions.

What are the different VAT rates in Switzerland?

The VAT rate applied in Switzerland depends on what’s being sold and to whom.

Here are the main VAT categories.

Standard VAT rate: 8.1%

This is the default rate and applies to most goods and services, including consumer products, electronics, clothing, furniture, digital services, professional services, consulting, event tickets, and restaurant meals. If a product or service doesn’t explicitly qualify for another rate, use the standard rate.

Reduced VAT rate: 2.6%

This reduced VAT rate applies to essential and socially important goods, such as basic foodstuffs, nonalcoholic beverages, medicines, books, newspapers, magazines, and agricultural supplies. Items such as alcohol, tobacco, and prepared restaurant food are excluded and remain subject to the standard rate.

Special VAT rate for accommodations: 3.8%

This rate applies to overnight lodging, including hotels, guesthouses, vacation rentals, and campsites, and it typically includes breakfast when it’s bundled with the room. Additional services that accommodation providers offer, such as spa treatments, conference facilities, or minibar items, are taxed at the standard VAT rate.

Zero-rated goods: 0%

Exports of goods and certain cross-border services are exempt, which means no Swiss VAT is charged to the customer. But the seller can still reclaim VAT paid on costs connected to the exempt activities. This prevents Swiss VAT from becoming a cost on international trade and outbound sales.

What is a Swiss VAT number?

A Swiss VAT number is the official identifier that confirms a business is registered for VAT in Switzerland. It appears on invoices, contracts, and tax filings and is how the tax authorities (and your customers) know you’re authorized to charge VAT.

Swiss VAT numbers follow the unique identifier (UID) format and look like this: CHE-123.456.789 MWST. The “CHE” prefix identifies Switzerland, the nine-digit number uniquely identifies the business, and the suffix reflects the language used for VAT (MWST in German, TVA in French, IVA in Italian).

That same UID-based number is used across multiple government systems. This simplifies identification and replaces older VAT number formats. A VAT number must be included on VAT-compliant invoices and is often displayed on company websites or legal notices. Business customers rely on it to validate invoices and reclaim input VAT.

Businesses receive their VAT number after completing VAT registration with the Swiss Federal Tax Administration.

Who needs to register for VAT in Switzerland?

Businesses must register for VAT if they surpass certain revenue thresholds. Once a business becomes liable for VAT in Switzerland, it must register within 30 days. Businesses below the thresholds can choose to register voluntarily. This is often done in order to reclaim VAT on business expenses or to simplify dealings with VAT-registered customers.

These are the primary types of businesses that need to register for VAT in Switzerland.

Businesses exceeding 100,000 CHF in global turnover

Any business based in Switzerland with annual revenue of more than 100,000 Swiss francs (CHF) must register for Swiss VAT. The threshold is based on global turnover and applies to any business that operates in Switzerland, even if the headquarters are elsewhere.

Foreign businesses selling to Switzerland

Non-Swiss companies are subject to the same 100,000 CHF global threshold. If that threshold is exceeded and the business sells taxable goods or services into Switzerland, VAT registration is mandatory even if Swiss sales are small. Foreign businesses without a Swiss presence are typically required to appoint a Swiss fiscal representative to handle VAT obligations and communication with the tax authorities.

Businesses providing only reverse-charge services

Foreign companies that supply services that are subject to the reverse-charge mechanism (when the buyer reports and pays the VAT, instead of the seller) are generally exempt from registering for Swiss VAT. In these cases, the Swiss customer accounts for the VAT directly, removing the registration requirement for the foreign supplier.

Nonprofits and volunteer-run organizations

Certain charitable, cultural, and sports organizations benefit from a higher VAT registration threshold: 250,000 CHF in annual turnover. This higher limit reflects their nonprofit status and reliance on volunteer operations.

How can businesses stay compliant with Swiss VAT?

Once you’re registered for VAT in Switzerland, compliance is mostly about consistency and follow-through.

Here’s how businesses should stay VAT-compliant:

• Charge the correct VAT rate: Registered businesses must apply the correct VAT rate to every taxable sale. VAT must be clearly shown to customers.

• Issue VAT-compliant invoices: Invoices must include the supplier’s name and VAT number, the customer’s details, the date, a description of what was sold, and the VAT rate and amount charged.

• Keep accurate records: Businesses are required to maintain complete records of sales, purchases, and VAT calculations. These records should be retained for at least 10 years.

• File VAT returns: Businesses typically file VAT returns quarterly, reporting VAT collected on sales and VAT paid on expenses. Returns and payments are due 60 days after the end of each reporting period. All companies must settle VAT via the ePortal.

• Pay or reclaim VAT: If output VAT exceeds input VAT, the difference must be paid to the tax authorities. If input VAT is higher (common for exporters or during periods of heavy investment), the business can reclaim the difference as a refund or credit.

The tax authority can audit VAT records and returns, and late filings or payments could trigger interest or penalties. Staying current, keeping clean records, and correcting errors early go a long way toward avoiding issues.

How do VAT refunds work in Switzerland?

VAT refunds in Switzerland depend on who paid the tax and why. Refund claims rely heavily on proper invoices, export proof, and meeting filing deadlines. Missing paperwork or late submissions can invalidate a claim entirely.

Here’s how VAT refunds work for domestic and foreign businesses and tourists.

VAT refunds for Swiss businesses

If a business pays more VAT on expenses than it collects from customers in a reporting period, it can reclaim the difference through its VAT return. This commonly happens for exporters, startups investing heavily up-front, or companies with seasonal revenue. Refunds are either paid out or credited to future returns.

VAT refunds for foreign businesses

Non-Swiss businesses that aren’t VAT-registered but incur Swiss VAT on business expenses (e.g., hotel stays, trade shows, local services) could be eligible for a refund. This depends on reciprocity agreements between Switzerland and the business’s home country, and claims must be submitted by strict annual deadlines, often through a fiscal representative.

VAT refunds for tourists

Nonresident visitors can claim refunds on goods purchased in Switzerland if they spend at least 300 CHF and export the goods unused within a certain time frame. Customs must validate the export before the refund is processed. VAT on services consumed in Switzerland (such as restaurant meals or local transportation) is generally not refundable for tourists.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.