Voluntary registration for VAT

In Switzerland, small companies, despite revenues below CHF 100,000, can benefit from a voluntary VAT registration for strategic reasons.

2012

Basically, regardless of the legal form, all companies are subject to value-added tax (VAT). However, if the revenue from taxable services (delivery and/or services) is less than CHF 100,000 per year, the company is exempt from VAT obligations. Those who are not registered for VAT cannot reclaim input tax either. In various situations, it may therefore be sensible to voluntarily register for VAT, even if you do not achieve revenue of CHF 100,000. Typical examples of this include:

If many of your customers are also subject to VAT. Because they usually prefer suppliers who are subject to VAT so that they can make the 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 you have paid.
If you are making larger investments at the beginning and want to reclaim the input tax incurred on them. It can thus happen that in the initial years, the input tax is higher than the VAT to be paid, leading to a tax credit.
If you do not want your customers to immediately see that your company has less than CHF 100,000 in revenue.

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