VAT return explained simply

Value added tax (VAT) is a central part of the Swiss tax system. Companies must account for it correctly and pay it over to the competent authority.

12 January 2024 by Rodolfo Intaglietta

Last updated: 13 October 2026

Information

Entry level

VAT

6 min

Key facts Basics VAT liability VAT return Accounting Software Pitfalls FAQ Key takeaways

About the author

A competent tax advisor stands in a modern fiduciary office, ready to provide client-focused advice.

Rodolfo Intaglietta

Managing Director | CEO

Rodolfo Intaglietta is the founder and managing director of ONE! Treuhand GmbH. As a Treuhänder mit eidg. Fachausweis (Swiss fiduciary with Federal Diploma of Higher Education) and Diplomierter Experte in Rechnungslegung und Controlling (Expert in Accounting and Controlling with Advanced Federal Diploma of Higher Education), he supports entrepreneurs throughout Switzerland with clear figures, digital processes and personal advice on an equal footing.

The qualification “eidg. diplomierter Experte in Rechnungslegung und Controlling” corresponds to qualification level NQF 8 and is therefore at the highest level of education, comparable to a doctorate in terms of professional depth and responsibility.

Key facts about this article

Summary

Value added tax is an indirect tax that companies collect and pay over on behalf of the federal government. The VAT return requires turnover and input tax to be recorded correctly. Accounting software such as bexio can support companies in this process.

What you will learn:

What value added tax is and what purpose it serves
Which VAT rates apply in Switzerland
When companies become subject to VAT
How the VAT return works
Which accounting methods exist
What role VAT plays in accounting
How accounting software supports the VAT return
Which mistakes often occur in the VAT return

Prerequisites

Basic knowledge is helpful

Tools you need:

Proper accounting
Invoices and receipts
VAT return with the Swiss Federal Tax Administration (ESTV)
Accounting software
If available: bexio accounting software

Updated on 22 August 2026. We checked the VAT rates, the turnover thresholds for VAT liability, the reporting periods and the filing channel. What has changed since first publication: since 1 January 2025, annual returns are possible in addition to quarterly and half-yearly returns, for annual turnover of up to CHF 5,005,000 and against installment payments. Also since 1 January 2025, platform taxation applies to sales of goods via electronic platforms. The “MWST-Abrechnung easy” service has been switched off; since 11 May 2026, returns can only be filed via “MWST-Abrechnung pro.” We added the turnover threshold of CHF 250,000 for associations and non-profit organizations. Still valid without change: the tax rates of 8.1%, 3.8% and 2.6%, the general turnover threshold of CHF 100,000, the choice between accounting on agreed consideration and on consideration received, and the input tax deduction.

What is value added tax?

Value added tax is an indirect tax levied by the federal government on the sale of goods and services. It is paid by consumers, but collected by companies and paid over to the state. The purpose of value added tax is to tax consumption and to help finance public expenditure.

Value added tax is used in most countries of the world, although the exact rates and rules vary from country to country.

In Switzerland, the standard rate for goods and services is 8.1%,
while there is also a special rate of 3.8% for accommodation including breakfast
and a reduced rate of 2.6% for everyday goods.

VAT liability

Not all companies are required to account for VAT. In Switzerland, companies with annual turnover of CHF 100,000 or more are subject to VAT. They must register online with the Swiss Federal Tax Administration (ESTV) and then receive their VAT number. For non-profit sports and cultural associations run by volunteers and for charitable organizations, the threshold is CHF 250,000.

Freelancers and small business owners can be exempt from VAT liability if their annual turnover is below the set threshold.

This can be a relief, as they do not have to show VAT on their invoices and do not have to make VAT payments.

VAT return

The VAT return is the process in which companies calculate VAT and settle it with the ESTV. It is important to complete the return correctly to avoid financial and legal consequences.

In the VAT return, companies must report the turnover on which they have charged VAT, as well as the input tax they have paid on business expenses. The difference between the VAT collected and the input tax paid is the VAT payable or refundable.

Every company must decide whether to account for VAT on agreed consideration or on consideration received. The standard method of the ESTV is accounting on agreed consideration. Here, VAT becomes due as soon as the company invoices its services.

When accounting on consideration received, VAT only becomes due when payment arrives, that is, as soon as the customer has paid the invoice.

To complete the VAT return correctly, you need an accurate overview of income and expenses. This requires proper accounting, and accounting software can make this process much easier.

Since 1 January 2025, platform taxation has also applied: if you sell goods via an electronic platform, the supply is attributed to the platform operator for VAT purposes.

The VAT return is filed via the ESTV portal. The former “MWST-Abrechnung easy” service has been switched off; since 11 May 2026, only “MWST-Abrechnung pro” is available.

VAT in accounting

Value added tax affects the accounting of companies. When recording VAT payments and refunds, companies must keep the relevant accounts and records.

VAT payments are usually recorded as liabilities, while VAT refunds are treated as receivables. It is important to keep these accounts properly and to record the relevant amounts in the accounts.

Value added tax also affects other areas of accounting, such as the profit and loss statement and the balance sheet. Companies should make sure that they integrate VAT into their accounting processes and take the related effects into account.

Your VAT is worth more!

Rely on targeted advice from a Treuhänder mit eidg. Fachausweis (Swiss fiduciary with Federal Diploma of Higher Education) in Zurich.

VAT advice

VAT returns with accounting software

Doing the VAT return manually can be time-consuming and error-prone. That is why more and more companies choose to automate this process.

Automating the VAT return has a number of advantages. It reduces human error, streamlines the process and saves time and resources. With accounting software, companies can handle the VAT return more efficiently and make sure that all legal requirements are met.

Accounting solutions such as bexio, Abacus or Banana automatically assign the right VAT code to each receipt, calculate the VAT and prepare the return for filing in the ESTV portal.

Common mistakes in the VAT return

Mistakes in calculating VAT or in recording turnover and expenses can sometimes happen. It is important to keep your accounting records carefully and to check the data regularly so that such mistakes can be found and corrected.

Another mistake is improper documentation. Companies must properly keep all relevant invoices, receipts and supporting documents so that they can provide evidence when needed.

To avoid mistakes in the VAT return, it is advisable to become familiar with the applicable regulations and rules and to get professional support where needed. Accounting software such as bexio can also help reduce errors and improve the accuracy of the return.

Frequently asked questions

What happens if I do not file my VAT return on time?

If you do not file your VAT return on time, penalties or late payment surcharges may apply. It is important to meet the deadlines.

Do I have to account for VAT as an SME?

VAT liability does not depend on the legal form of a company, but on its annual turnover. Below the threshold of CHF 100,000, there is no VAT liability.

Are there exceptions to VAT liability?

Yes, there are certain exceptions to VAT liability, for example for certain goods and services.

How often do I have to file my VAT return?

The standard is a quarterly return. If you use the net tax rate method, you file every six months. Since 1 January 2025, companies with annual turnover of up to CHF 5,005,000 can apply to file annually; in return, they pay installments during the year. Monthly returns are possible on application, for example if you regularly have an input tax surplus.

Can I claim back VAT as input tax?

Yes, companies can claim back the VAT they have paid as input tax and have it refunded.

Key takeaways

Value added tax is an indirect federal tax.
Companies with annual turnover of CHF 100,000 or more are subject to VAT.
The VAT return is based on turnover and input tax.
There are different accounting methods.
Automation can reduce errors and save time.

Value added tax is a central indirect tax in the Swiss tax system. A correct VAT return based on turnover and expenses is very important for companies. Automation and accounting software can help reduce errors, simplify processes and reliably meet the legal requirements.

Sources

Schweizerische Eidgenossenschaft. (1 January 2025). Mehrwertsteuergesetz (MWSTG, SR 641.20), Art. 10, 25, 35 and 37. Retrieved 22 August 2026 from fedlex.admin.ch
Eidgenössische Steuerverwaltung. (2026). MWST-Steuerpflicht. Retrieved 22 August 2026 from estv.admin.ch
Eidgenössische Steuerverwaltung. (11 May 2026). Mehrwertsteuer online abrechnen. Retrieved 22 August 2026 from estv.admin.ch
Eidgenössische Steuerverwaltung. (1 January 2024). Schweizer Mehrwertsteuersätze. Retrieved 22 August 2026 from estv.admin.ch

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