How vat / sales tax works in Switzerland
Swiss VAT (MWST) runs at 8.1% on most domestic supplies since January 2024, with businesses charging output tax, deducting input tax, and filing quarterly or semi-annual returns through the ESTV portal.
A 2.6% reduced rate covers food, books, newspapers, and medicines, a 3.8% special rate covers hotel accommodation, and exports plus qualifying cross-border services take 0%.
Registration is compulsory past CHF 100,000 of taxable turnover, with voluntary registration, balance and flat-rate simplifications, and group taxation available by election.
Tax rates at a glance
- Standard VAT
- 8.1%
- Reduced VAT
- 2.6%
- Accommodation VAT
- 3.8%
- Exports
- 0%
- Registration threshold
- CHF 100,000
- Foreign B2C supplies
- 8.1%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- The 2024 rate lift from 7.7% to 8.1% still sits inside multi-year contracts and price lists, so legacy 7.7% figures in templates create systematic under-charging.
- Foreign mail-order sellers face Swiss registration from CHF 100,000 of small-consignment sales, with import-VAT mechanics shifting onto the vendor.
- Balance and flat-rate schemes simplify filing but forfeit exact input recovery, which hurts investment-heavy years that standard accounting would shelter.
- Hotel stays at 3.8% versus restaurant meals at 8.1% splits hospitality bills the same way EU reduced-rate systems do.
Frequently asked questions
What is the VAT rate in Switzerland?
Switzerland applies 8.1% standard VAT in 2026, with 2.6% on food, books, and medicines, 3.8% on hotel accommodation, and 0% on exports.
When must a Swiss business register for VAT?
Past CHF 100,000 of taxable turnover. Voluntary registration below that suits startups with heavy input VAT on setup costs.
Do foreign online sellers charge Swiss VAT?
Yes once past the small-consignment threshold, with Swiss VAT on B2C supplies and import-VAT handling moving to the registered vendor.