The Swiss consumption tax, levied on most goods and services. Known as MWST in German and TVA in French.
Rates since 1 January 2024:
Registration becomes compulsory once worldwide taxable turnover reaches CHF 100,000 a year. Below that, a business may register voluntarily, which can be worthwhile when it incurs significant input VAT.
VAT is a tax on the end consumer: a registered business collects it on its sales, deducts the VAT it paid on its purchases, and pays the difference to the ESTV.
Returns are filed quarterly under the effective method and semi-annually under the net tax rate method, each within 60 days of the end of the period. Since 1 January 2025, smaller businesses may opt for an annual return with instalments.
