Switzerland: rates and registration
Since 1 January 2024, Switzerland's standard VAT (MWST/TVA/IVA) rate is 8.1%, up from 7.7%. The reduced rate of 2.6% covers everyday essentials: food, non-alcoholic drinks, books, newspapers, magazines and medicines. The special accommodation rate of 3.8% applies to hotel and B&B stays.
Registration is mandatory once your worldwide turnover from taxable supplies exceeds CHF 100,000 in a 12-month period. Below that, registration is voluntary — sometimes worth it to recover input VAT on big purchases, but it adds quarterly filing obligations. Non-profit and sports associations have a higher threshold of CHF 250,000.
EU rates and the destination principle
EU VAT is national but harmonized: each member state sets its own rates within EU-imposed ranges (standard ≥15%, reduced ≥5%). Selected 2026 standard rates: Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Belgium 21%, Austria 20%, Poland 23%, Sweden 25%, Hungary 27%, Luxembourg 17%.
For B2C cross-border digital and distance sales, the destination principle applies: you charge the VAT rate of the customer's country, not yours. The OSS (One-Stop Shop) registration in one EU country lets you file a single VAT return covering sales to all 27 member states. Below an EU-wide €10,000 annual threshold, you can stick with your home-country rate.
Reverse charge: the B2B simplification
For B2B services and goods crossing EU borders, the reverse charge mechanism shifts the VAT obligation from the supplier to the customer. You invoice net (0% VAT) with the note 'Reverse charge — VAT to be accounted for by the recipient' and both VAT IDs. The customer reports the VAT as both output and input on their own return, with zero net cash effect if they're fully taxable.
Reverse charge also applies to specific domestic sectors (construction in Germany, certain electronics) and to most services sold to EU businesses by Swiss suppliers. Switzerland itself uses reverse charge for services received from foreign suppliers above CHF 10,000/year — the Swiss customer self-accounts for the VAT.
Calculate VAT for any rate
Switch between Swiss MWST and any EU rate, convert net↔gross, and see exactly how much VAT to invoice or reclaim.
Open the VAT calculator →Frequently asked questions
How do I add VAT to a net price?+
Multiply by (1 + rate as decimal). CHF 100 net at 8.1% Swiss VAT: 100 × 1.081 = CHF 108.10 gross. At 20% French VAT: 100 × 1.20 = EUR 120 gross.
How do I extract VAT from a gross price?+
Divide by (1 + rate). EUR 120 gross at 20% French VAT: 120 ÷ 1.20 = EUR 100 net, VAT = EUR 20.
Can a Swiss business reclaim EU VAT on business expenses?+
Yes, via the 13th Directive refund procedure — apply to each EU country separately by 30 June of the following year. Minimum amounts apply (typically €50–400). Most practical for trade fairs, hotels and EU-sourced equipment.
What's the penalty for not registering on time?+
Switzerland: back-VAT plus interest (currently 4.75%) and potentially a fine up to 25% of the unpaid VAT. EU countries vary but typically charge interest and 10–30% penalties for late registration.
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