VAT liability
A business becomes liable for VAT when, within one year, it achieves at least CHF 100,000 of turnover in Switzerland and abroad from supplies not excluded from the tax; below that there is exemption, which can be waived voluntarily.
Definition
For non-profit, voluntarily managed sports and cultural associations and for charitable institutions the limit is CHF 250,000. What governs is turnover from taxable supplies — excluded turnover such as residential letting or medical treatment does not count.
Waiving the exemption voluntarily often makes sense where large investments are due or where you mainly supply taxable customers: the input tax deduction is then worth more than the administration saved. With end consumers it is usually the other way round.
The wording
Anyone who, within one year, generates turnover of less than CHF 100,000 in Switzerland and abroad from supplies that are not exempt from the tax under Article 21 paragraph 2 is released from tax liability.
The numbers
- CHF 100,000
- annual turnover from taxable supplies at which liability begins Art. 10 para. 2 VAT Act
Where to read it
What the software must be able to do
What matters in practice is the transition: whoever becomes liable has to show tax from the effective date and can claim a subsequent input tax relief. The software should know that date and not revalue everything retroactively.
Checked Aug 2026
More terms under VAT and customs: Acquisition tax 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 %