A simplified VAT method reserved for public bodies and related institutions, including associations and foundations: a flat tax rate set per activity is applied to turnover, instead of deducting input VAT separately. Organisations that want to use it must notify the ESTV in writing.
It works like the net tax rate method, but is open only to these organisations, and with no turnover limit. Revenue must be booked separately for each approved flat tax rate, and invoices still show the statutory VAT rate, not the flat tax rate. Returns are filed quarterly, or annually with instalments, on application and subject to conditions.
Conditions (2025): a switch to the effective method is only possible after one full tax period. On switching to the flat tax rate method, input VAT previously deducted must be repaid, based on residual value. Group taxation is not available.
Known in French as the méthode des taux forfaitaires and in German as the Pauschalsteuersatzmethode. Not to be confused with the UK Flat Rate Scheme, whose closest Swiss equivalent is the net tax rate method.
