Voluntary registration for value-added tax

In principle, regardless of the legal form, all companies are subject to VAT. If the turnover from taxable supplies (delivery and/or services) per year is less than CHF 100,000, the company is, however, exempt from the VAT obligation. Registration is therefore not mandatory. Those who are not registered for VAT, however, cannot claim input tax.

In various situations, it may be wise to voluntarily subject oneself to VAT, even if the turnover does not reach CHF 100,000.

Typical examples include:

• If many of your customers are also subject to VAT. They usually prefer suppliers who are under VAT so that they can make deductions themselves.
• If you primarily export or provide services abroad. Because you do not have to charge VAT on exports, but can still claim the input taxes paid.
• If you are making larger investments at the beginning and would like to claim the input tax incurred. Thus, it can also happen that in the first years the input tax is higher than the VAT due, which then leads to a tax credit.
• If you do not want your customers to immediately see that your company makes less than CHF 100,000 in turnover.