Started in January 1, 2025, Swiss SMEs may choose annual VAT reporting if their taxable turnover is below CHF 5,005,000 and they have a compliant history. Applications via the SFTA ePortal are due by February 28, 2026. Advance payments are required, with specific deadlines and potential revocation conditions.
Switzerland to Allow Annual VAT Reporting for Small Businesses
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Switzerland
Author: Ema Stamenković
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General information
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2158
Content accuracy validation date:
05.01.2026
Content accuracy validation time:
13:01h
As of January 1, 2025, Swiss VAT-registered small and medium-sized enterprises (SMEs) can opt for annual VAT reporting instead of quarterly or monthly submissions.
Eligibility and Conditions
To qualify, businesses must meet these criteria set by the Swiss Federal Tax Administration (SFTA):
- Annual Turnover Threshold: Taxable turnover must not exceed CHF 5,005,000.
- Compliance History: The taxpayer must have filed VAT returns and paid tax claims on time and in full for the previous three tax periods (or since tax liability began for newer businesses).
Eligible businesses can apply via the SFTA ePortal. For the 2026 tax period, the application deadline is February 28, 2026.
Reporting Process
Filing is annual, but advance payments are still required. The SFTA assesses advance payment amounts, typically based on the previous year’s liability:
- Effective and flat-rate methods: Three instalments due May 30, August 30, and November 30.
- Net tax rate method: One instalment due August 30.
Late payments incur interest on arrears for both instalments and the annual return. Advance payments are offset against the final tax due, determined when submitting the annual return by the end of February of the following year. Any excess is refunded.
Revocation of the Annual VAT Reporting Option
The SFTA can revoke authorization if a business:
- Exceeds the CHF 5,005,000 turnover threshold.
- Revokes the annual statement via ePortal by the end of February after the tax period begins (at latest).
- Fails to submit the annual return on time.
- Has unpaid VAT debts or requests an excessive reduction of advance payments.
Businesses losing eligibility must revert to more frequent reporting (e.g., quarterly or semi-annual).
Considerations for Businesses
Annual reporting provides administrative relief but requires careful cash flow planning for advance payments. Businesses expecting regular VAT refunds may prefer more frequent reporting to receive refunds sooner.
Non-compliance with payments, exceeding the turnover threshold, or other issues may lead to revocation. Once switched to annual reporting, businesses must remain in it for at least one full tax period.
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