- Starting January 2025, Swiss VAT law will allow companies to file VAT returns annually, potentially reducing their reporting frequency and administrative burden, alongside the existing quarterly, bi-annual, and monthly filing options.
- The standard reporting period will remain quarterly, while special net tax rate scheme taxpayers will file bi-annually, and those typically in a refund position may switch to monthly reporting; low-turnover taxpayers can opt for annual reporting.
- To qualify for annual VAT reporting, companies must have an annual taxable turnover not exceeding CHF 5,005,000 and a clean compliance history, having filed returns and paid all tax liabilities on time for the last three tax periods.
- Businesses choosing annual VAT reporting will need to make advance payments or VAT installments to the Swiss Federal Tax Authorities (SFTA), with amounts based on previous reporting periods.
- These advance payments ensure steady revenue for the SFTA and prevent underpayment; any excess payments will be refunded after reconciling with the final tax position reported in the annual return.
Source Marosa
