A simplified VAT method, available on application to the ESTV, under which a fixed industry rate is applied to gross turnover instead of deducting input VAT separately.
Conditions: annual turnover from taxable supplies of no more than CHF 5,024,000 including VAT, and tax due of no more than CHF 108,000 a year. Because of the tax limit, the turnover ceiling is lower for the higher rates, for example about CHF 1.59 million at 6.8%.
There are ten rates, set by sector, from 0.1% to 6.8% (2026). Each is set to approximate the input VAT a typical business in that sector would reclaim. Returns are filed semi-annually rather than quarterly, which is the main administrative saving.
Invoices still show the statutory rate of 8.1%, not the net tax rate. Known in French as the méthode des taux de la dette fiscale nette and in German as the Saldosteuersatzmethode. It should not be confused with the flat tax rate method (Pauschalsteuersatz), which is reserved for public bodies and related institutions, including associations and foundations.
Comparable abroad: the UK Flat Rate Scheme, which also applies a sector percentage to VAT-inclusive turnover instead of reclaiming input VAT. Despite the similar name, it does not correspond to the Swiss flat tax rate method.
