value-added tax
value-added tax liability
The value-added tax, also known as VAT, is a neutral indirect tax borne by the final consumer. In Switzerland, any company (Large, SME or VSE) whose turnover exceeds CHF 100,000 is subject to Value-Added Tax at the rate indicated by its sector of activity and the type of service it provides. The basic rate for services is 7.7%.
The company must immediately notify the Administration Fiscale des Contributions, also known as the AFC, when the turnover exceeds the indicated amount.
We recommend that you call our experts so that you do not commit any error when filing your VAT returns. Our Swiss Accounting Firm in Geneva can offer tax consulting and management services. Our specialists can handle all the complexities of the VAT liability. They accompany you so that you perfectly respect all the legal imperatives and deadlines. To put it simply, we take care of your tax liabilities.
Are you subject to value-added tax?
The AFC establishes a precise definition of companies that are subject to the value-added tax. According to authorities, any company can be subjected to this tax at the normal basic rate of 7.7%, whether it is a profit-making company or not, as long as its objective is to generate permanent revenues. Value-Added Tax applies to all types of business structures. Under certain circumstances, a company can choose to be voluntarily subjected to VAT in order to benefit from financial advantages. Indeed, in certain cases, the company can recover the VAT it has paid. SAFE recommends you to declare yourself as a taxable person as soon as you meet the following criteria:
- You are planning to make major investments
- You have your own premises
- You outsource some of your services
- Your turnover is growing rapidly
WHAT IS THE MINIMUM AMOUNT OF REVENUE THAT MAKES YOU LIABLE TO the value-added tax?
You are obliged to pay value-added tax if your company’s revenues, which are generated from taxable services, amounts to at least CHF 100,000 during the fiscal year. This rule applies if your company is profit-oriented. If you operate as a non-profit or charitable organization, the minimum amount is CHF 150,000.
You should also be aware of the fact that the provision of services to taxpayers in Switzerland makes the provider subject to value-added tax. This applies as long as the services in question are not part of the exceptions stipulated by the AFC. To know more about these exceptions, do not hesitate to contact the tax specialists of our fiduciary in Geneva.
Our VAT services
VAT Management
Our tax accountants can handle your VAT declarations to the Swiss authorities. They can also take into account this tax in the treatment of your accounting.
CHF 50.-
Monthly price
VAT Advice
Our consultants can help you to clarify your fiscal situation. They can also show you the best strategy to adopt regarding your VAT liability.
CHF 150.-
Price per hour
What are the vat liability deadlines that you must meet?
According to the AFC, you are subject to value-added tax from the moment you start your business. That is to say, from the moment your projections indicate that you will exceed a turnover of CHF 100,000 during the course of the year that follows the launch or takeover of your business.
At the start of the company, it is sometimes impossible to know whether the turnover will reach CHF 100,000. In such a situation, the application for tax liability must be submitted within the three months that follow the possibility of reaching this figure. Once you have calculated your projected turnover, you have 30 days to register, in writing, with the AFC.
To find your way through your VAT statement and know which rules you are subject to, do not hesitate to call on our experts. Our specialists can offer you a VAT audit that will allow you to quickly know what strategy to adopt in this situation. They can then assist you in your dealings with the Tax Administration.
