Software Radar

Acquisition tax

Acquisition tax is the VAT the recipient in Switzerland accounts for themselves on services from abroad, because the foreign supplier is not liable here.

Definition

It affects practically every business that buys software, advertising or consulting abroad: an American provider’s subscription arrives without Swiss VAT, yet the tax is owed — by the recipient. Whoever is entitled to deduct input tax can deduct it in the same step; on balance a zero-sum game with a duty to declare.

For non-liable businesses an annual threshold applies; above it, accounting is required even without tax liability. This is where businesses without a VAT number trigger an obligation unnoticed.

Where to read it

What the software must be able to do

Check whether there is a tax code for acquisition tax that adds the tax and simultaneously deducts it as input tax, and whether such documents are shown separately in the return.

Checked Aug 2026

More terms under VAT and customs: Customs declaration Effective method Exempt supplies Flat-rate VAT method Input tax Margin taxation Non-consideration Own use Place-of-recipient rule Reduction of consideration Takeaway 2.6 vs. eat-in 8.1 Value added tax VAT 3.8 % accommodation VAT 8.1 / 2.6 / 3.8 % VAT liability