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Who has to pay VAT?

Businesses are liable to VAT irrespective of their legal form.

Businesses based in Switzerland

  • If the annual turnover from taxable supplies generated in Switzerland and/or abroad is less than CHF 100,000 (CHF 150,000 for charitable institutions and non-profit-oriented sports and cultural associations), the business is exempt from VAT.

  • Businesses that only supply goods or  services in Switzerland that are exempt from VAT (e.g. medical treatments, educational services) do not have to register for VAT.

Businesses based abroad

  • In principle, businesses that supply goods or services in Switzerland are liable to pay VAT on all turnover in Switzerland.

  • However, businesses whose entire annual turnover from taxable supplies on Swiss territory and abroad is less than CHF 100,000 (CHF 150,000 for charitable institutions and non-profit-oriented sports and cultural associations) are not liable to pay VAT.

  • Businesses that only supply goods or services in Switzerland that are zero-rated for VAT (e.g. exports) are not liable to pay VAT.

  • Businesses that only supply  goods or services in Switzerland that are exempt from VAT (e.g. medical treatment, educational services) do not have to register for VAT. This also applies if, in addition to supplying goods or services that are exempt, they also supply goods or services that are zero-rated for VAT.

Liability to pay VAT in various sectors

Statutory provisions on exempted supplies