Invoice without VAT in Switzerland: what to write, and what to leave out
If you are not registered for VAT, your invoice shows no rate, no VAT amount and no VAT number. No wording is mandatory. Here is why, with an example.
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In short. If your business is not registered for VAT, your invoice simply states the price: no rate, no VAT amount, no VAT number. Swiss law does not require a sentence such as "not subject to VAT". It does forbid showing VAT on an invoice when you are not registered, and anyone who does so owes that amount to the Confederation.
Who invoices without VAT in Switzerland?
Any business whose annual turnover stays below CHF 100'000 is exempt from VAT liability. The figure counts sales in Switzerland and abroad, leaving out supplies that are excluded from the tax (Art. 10 para. 2 let. a of the VAT Act).
This is the case for most freelancers starting out. There is nothing to apply for and nothing to declare: as long as you stay under the threshold, you invoice without VAT.
This is not a small-business scheme as in the EU or the UK: in Switzerland there is no legal wording to copy onto the invoice.
What your invoice must contain
Without VAT, a clear invoice contains:
- your name or your business name, and your address;
- your customer's name and address;
- the invoice date;
- what you supplied, and when;
- the amount due and the payment term;
- your payment details, ideally a QR-bill.
The VAT Act does not require an invoice number, but it will save you a lot of searching: keep a simple sequence with no duplicates.
For a one-off invoice, our free invoice template makes a correct one, with its QR-bill: answer "No" to the VAT number question.
What not to write
| Do not write | Why |
|---|---|
| "VAT 8.1%" followed by an amount | You are not allowed to show the tax, and you would have to pay it |
| "VAT included" | It suggests the price contains VAT |
| "VAT 0%" | That rate does not exist for an unregistered business |
| A number "CHE-… MWST" | That suffix is reserved for VAT-registered businesses |
The rule is in Art. 27 of the VAT Act: anyone who is not entered in the register of taxable persons may not show the tax on invoices, and anyone who does so wrongly owes it.
Example. Lea, a graphic designer, invoices CHF 1'200 for a logo. She is not registered for VAT. Her invoice reads "Total: CHF 1'200.00", with no other line. Had she written "VAT 8.1%: CHF 97.20", she would owe those CHF 97.20 to the Federal Tax Administration, and her customer could not reclaim them.
Do you have to write "not subject to VAT"?
No, it is not mandatory: no official text requires this sentence. You may add it if your customers are businesses and often ask. One line is enough, for example: "Business not subject to VAT."
You showed VAT by mistake
Correct the invoice: send your customer a new document that refers to the original invoice and cancels it, then the right invoice without VAT. If the customer has already paid, refund the difference.
When you approach CHF 100'000
The exemption ends as soon as your turnover reaches CHF 100'000 in a financial year, or as soon as it is foreseeable that you will exceed that amount within twelve months of starting or expanding your activity. You must then register with the Federal Tax Administration within 30 days ("Tax liability" page of the FTA).
You can also register voluntarily before reaching the threshold, for instance to reclaim the VAT on large purchases. Talk to your accountant before you decide.
To see where you stand, take our "Must I register for VAT?" test: two figures are enough. Once registered, check how your number is written with our VAT number checker.
In Yoda Bill
When you create your account, answer "No" to the question "Do you have a VAT number?". VAT then disappears from your quotes and invoices: only your prices and the total remain. Once you are registered, you add your number in the settings and the rates appear on each line.