Annual VAT return from 1 January 2025

From 1 January 2025, new rules on VAT reporting take effect that offer administrative relief, particularly for small and medium-sized enterprises. Companies with annual turnover of up to CHF 5,005,000 can apply to report VAT once a year instead of quarterly, half-yearly or monthly as before.

26 January 2026 by Rodolfo Intaglietta

Last updated: 13 October 2026

VAT

Switzerland

6 min

What’s new Key points Deadlines The installments Termination FAQ Conclusion

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

From 1 January 2025, companies with annual turnover of up to CHF 5,005,000 can report their VAT once a year. The annual VAT return brings administrative relief, but is tied to clear requirements, deadlines and mandatory installment payments.

What does this mean?

What this means:

Companies can switch their VAT reporting to an annual cycle.
The ongoing administrative burden is reduced.
The requirement is that VAT returns have so far been filed on time and in full.
VAT is declared and settled once a year.
Payment is made in installments set by the ESTV.
Missed deadlines or insufficient payments can lead to revocation.

What you should do now

Your to-dos:

Check whether your company stays within the turnover threshold of CHF 5,005,000.
Apply for annual reporting via the ESTV ePortal.
The application for annual reporting must be submitted by 28 February of the year from which it is to apply: for 2027, by 28 February 2027. Companies that have newly become liable for VAT have 60 days from receiving their VAT number.
Plan for the installment payments set by the ESTV.
Monitor reporting and payment deadlines consistently.

Tools you need:

ePortal of the Swiss Federal Tax Administration (ESTV)
VAT reporting system
Overview of the last tax period
Liquidity planning for installment payments
ESTV publications on VAT from 2025

What changes with the annual VAT return?

The annual VAT return allows companies with taxable annual turnover of up to CHF 5,005,000 to report VAT once a year instead of monthly, quarterly or half-yearly. It has applied since 1 January 2025 and is tied to installment payments during the year.

Benefits of annual reporting

Switching to annual reporting makes the reporting process more efficient and less time-consuming. The requirement is that past and future VAT returns are filed on time and the amounts due have been paid in full.

Application

The application for annual reporting can be submitted from January 2025 via the ePortal of the Swiss Federal Tax Administration (ESTV). It must be submitted by 28 February of the year from which annual reporting is to apply: for 2027, by 28 February 2027.

Companies that have newly become liable for VAT have a deadline of 60 days from receiving their VAT number.

Process and deadlines

With annual reporting, nothing changes in the declaration itself. Companies can still submit correction statements,
carry out annual reconciliations and apply for deadline extensions.

The annual VAT return must be submitted by the end of February of the following year, and the amount due must be paid in full.

Installment payments

Anyone who chooses annual reporting commits to paying installments that are set by the ESTV and available in the ePortal from April.

Effective method and flat tax rate method: three installments, due on 30 May, 30 August and 30 November
Net tax rate method: one installment, due on 30 August

For late payments, late payment interest is charged on both the installments and the annual VAT return.

Termination of annual reporting

Annual reporting can end in three ways: the company revokes it via the ePortal by the end of February after the start of the tax period at the latest; the ESTV revokes it if the turnover threshold of CHF 5,005,000 is exceeded in three consecutive tax periods; or the ESTV revokes it if deadlines are missed or installments are not paid in full.

Your questions answered

Who can report VAT annually?

Since 1 January 2025, companies with taxable annual turnover of up to CHF 5,005,000 can apply to report once a year. The requirement is that past and future VAT returns are filed on time and the amounts are paid in full.

By when must the application for annual reporting be submitted?

The application is made via the ESTV ePortal and must be submitted by 28 February of the year from which annual reporting is to apply. Companies that have newly become liable for VAT have 60 days from receiving their VAT number.

By when must the annual VAT return be submitted?

By the end of February of the following year. The amount due must also be paid in full by then.

Which installments apply with annual reporting?

The ESTV sets the installments and makes them available in the ePortal from April. With the effective method and the flat tax rate method, there are three installments, due on 30 May, 30 August and 30 November. With the net tax rate method, there is one installment, due on 30 August. Anyone who pays late owes late payment interest on the installments and on the annual VAT return.

How does annual reporting end?

The company can revoke it via the ePortal. The ESTV revokes it if the turnover threshold of CHF 5,005,000 is exceeded in three consecutive tax periods, or if deadlines are not met and installments are not paid in full.

Sources

Further information and legal basis:

Mehrwertsteuerverordnung mit Änderungen ab 2025 (PDF)

Eidgenössische Steuerverwaltung ESTV – Änderungen bei der MWST ab 1. Januar 2025, jährliche Abrechnung

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