Is my company liable for VAT?

This applies to private individuals (e.g. sole proprietorships) as well as companies (e.g. general partnerships, limited liability companies, public limited companies). The standard tax rate is 8%, although there are exceptions for lower rates.

Exemptions from the VAT obligation

However, there are various exceptions to this tax liability. On the one hand, you are only liable for VAT from a certain turnover or a certain tax amount, and on the other hand, various activities are exempt from VAT.

Anyone who generates an annual turnover of less than CHF 100,000 in Switzerland is generally exempt from VAT liability. Up to certain turnover limits, the person liable for VAT can also choose whether to settle VAT effectively or using net tax rates, which vary depending on the sector. SMEs in particular benefit from the net tax replacement method, as they will pass on their products/services to the consumer at the usual VAT rate, but owe the state a lower tax.

In summary: Once the limit of CHF 100,000 in annual turnover has been exceeded, the VAT liability must always be clarified in detail, ideally together with an experienced advisor.

Exceptions and exemptions

Apart from these turnover and tax amount limits, there is an extensive list of tax exemptions and exceptions. Examples of exemptions include services provided by doctors and admission prices to zoos. Exemptions include travel agency services and the rental of airplanes. Whether a newly founded company falls under an exception or exemption must be checked on a case-by-case basis.