Changes to the net tax rate method since 1 January 2025

From 1 January 2025, important adjustments to the method of accounting with net tax rates (SSS) take effect. These changes are intended to clarify the VAT rules and simplify declaration practice. Companies should review the changes in good time and adjust their accounting accordingly.

26 January 2026 by Rodolfo Intaglietta

Last updated: 13 October 2026

VAT

Switzerland

6 min

What’s new Key points Tax rates Abolition Implementation FAQ

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

Changes to the net tax rate method apply from 1 January 2025. Companies can now apply more than two net tax rates if the 10% rule is met.

In addition, the requirements for changing methods are changing, net and flat tax rates are being reviewed, special procedures are being abolished and additional net tax rates can be applied for. Special new rules apply to travel agencies from 2025.

What does this mean?

What this means:

From 2025, clarified VAT rules apply to accounting with net tax rates (SSS).
More than two net tax rates can be applied if the 10% rule is met.
If an activity exceeds the 10% threshold, it must be accounted for separately at the corresponding net tax rate.
When the accounting method is changed, input tax corrections must be made via code 415 or 410.
Certain special procedures are being abolished.
From 2025, travel agency services that only arrange travel can be exempt from VAT and must be declared under code 230.

What you should do now

Your to-dos:

Check how the changes affect your specific activities.
Adjust your accounting so that it records different net tax rates correctly.
Apply for new net tax rates directly in the VAT return if necessary.
Clarify in good time whether you need to change your accounting method.
A change of accounting method must be reported by 28 February of the year from which it is to apply: for 2027, by 28 February 2027.

Tools you need:

VAT return with access to codes 410 and 415
Accounting software that records different activities separately
ESTV contact form
Declaration of submission to the net tax rate method
Internal documentation of activities, services and turnover
Current ESTV information on net and flat tax rates from 2025

What is changing in the net tax rate method?

The net tax rate method is a simplified VAT accounting procedure: instead of recording output tax and input tax separately, the company multiplies its gross turnover by a net tax rate specific to its sector. It is permitted up to an annual turnover of CHF 5,024,000 and a tax liability of CHF 108,000.

The most important changes at a glance

More than two net tax rates possible

In future, companies can apply more than two net tax rates if the 10% rule is met. This means that an activity must be accounted for separately at the corresponding net tax rate if it makes up more than 10% of total taxable turnover.

Example: a sports shop sells sporting goods (net tax rate 2.1%), rents them out (net tax rate 3.0%) and offers services (net tax rate 5.3%). Until now, ancillary activities of up to 50% could be accounted for at the main rate. Now separate rates are required if the 10% threshold is exceeded.

Changes when switching the accounting method

From the effective method to the net tax rate method: the input tax claimed so far must be corrected and repaid on the current value of the existing goods and services.

From the net tax rate method to the effective method: the input tax contained in the current value can be claimed in the first VAT return after the change.

The corrections are made via codes 415 and 410 of the VAT return.

Review of net and flat tax rates

The Swiss Federal Tax Administration (ESTV) has reviewed all existing rates and redefined some of them. They are adjusted automatically in the VAT returns. Companies do not need to take any action here.

Special procedures are abolished

The previous procedures for export supplies (Form 1050), notional input tax credit (Form 1055) and margin taxation (Form 1056) are being abolished.

Applying for additional net tax rates

If new net tax rates are needed for certain activities, they can be applied for and declared directly in the VAT return. The ESTV reviews and approves them afterwards.

Special features: abolition of the 50% rule and a new tax exemption

Mixed sectors and the 50% rule: the previous simplification for sectors that carry out several activities (e.g. sports shops) no longer applies. Every activity that makes up more than 10% of total turnover must now be accounted for at a separate net tax rate.

Travel agencies: the net tax rate for “Travel agency: pure retailer” is abolished. From 2025, services of pure travel intermediaries are exempt from VAT and must be declared under code 230 in the VAT return. Voluntary taxation (option) is no longer possible under the net tax rate method.

Changing the accounting method

A change of accounting method must be reported by 28 February of the year from which it is to apply: for 2027, by 28 February 2027. Companies that want to change their accounting method must observe the following:

Change from the net tax rate method to the effective method: report this via the ESTV contact form.
Change from the effective method to the net tax rate method: submit the declaration of submission to the net tax rate method.

The necessary corrections must be made in the last VAT return before the change or the first one after it.

Your questions answered

What is the most important change to the net tax rate method from 2025?

From 1 January 2025, the previous 50% rule is abolished. The 10% rule now applies: every activity that makes up more than 10% of total taxable turnover must be accounted for separately at the corresponding net tax rate (SSS). This means that a company can now have more than two net tax rates.

Example: a sports shop that sells sporting goods (net tax rate 2.1%), rents them out (net tax rate 3.0%) and carries out repairs (net tax rate 5.3%) must account for these activities separately if each of them makes up more than 10% of turnover.

What happens when a company switches from the effective method to the net tax rate method?

When switching to the net tax rate method, companies must make corrections. The input tax claimed so far on the current value of the existing goods and services must be repaid to the ESTV. This is done in the last VAT return before the change, via code 415 of the return.

Which procedures under the net tax rate method are abolished from 2025?

From 1 January 2025, the following special procedures no longer apply:

Export supplies (Form 1050)
Notional input tax credit (Form 1055)
Margin taxation (Form 1056)

Companies need to prepare for the new declaration requirements and adjust their VAT return accordingly.

What do travel agencies need to consider under the net tax rate method?

The previous net tax rate for “Travel agency: pure retailer” is abolished. From 2025, services of travel agencies that only arrange travel are exempt from VAT and must be declared under code 230 in the VAT return.

Voluntary taxation (option) is no longer possible under the net tax rate method. Companies should check whether they can be removed from the VAT register if they provide no other taxable services.

How can an additional net tax rate be applied for?

From 1 January 2025, activities that require an additional net tax rate can be applied for and declared directly in the VAT return. The Swiss Federal Tax Administration (ESTV) reviews and approves them afterwards.

It is important to record the different activities and services separately in the accounts to ensure a correct declaration.

Sources

Further information and legal basis:

Mehrwertsteuergesetz mit Änderungen 2025 (PDF)

Verordnung der ESTV über die Höhe der Saldosteuersätze nach Branchen und Tätigkeiten

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