Introduction
Starting from 2025, Swiss businesses will have a new option for reporting VAT: the annual statement. Currently, businesses report VAT quarterly or semi-annually, which can be a significant administrative burden, especially for small enterprises.
What is the annual VAT statement?
The annual statement means that the businesses concerned will report and pay VAT only once a year, instead of multiple times throughout the year. This applies to the entire scope of their operations for the fiscal year.
Who can choose this option?
This option is intended for businesses with an annual turnover not exceeding CHF 5,005,000. If your business generates a turnover below this threshold and is subject to VAT, you can, upon request, opt for the annual statement.
To adopt the annual VAT statement starting from January 1, 2025, businesses must submit their request through the ePortal of the Federal Tax Administration (FTA) by February 28, 2025.
In addition, their VAT statements must have been filed on time during the last three tax periods. Newly-taxed companies have 60 days after receiving their VAT number to make this request.
Quarterly instalments
Even with the introduction of the annual statement, companies will still have to make quarterly installments. These installments will enable VAT payments to be spread over the year, and avoid a large single settlement at the end of the financial year.
Instalments are generally calculated on the basis of the VAT declared in the previous year, or an estimate provided by the company. Each quarter, the company must pay the set amount, and a regularization will be made at the time of the annual declaration.
