Anyone who becomes liable for VAT in Switzerland has to choose a filing method. Most choose by gut feeling or by what their predecessor did. Yet the question can be answered cleanly in ten minutes – if you know what matters.
All 16 modules · CHF 29 per month
Try free for 14 days — no credit card.
The difference in two sentences
Under the effective method you offset the sales tax you charged your customers against the input tax you paid yourself. The difference goes to the FTA. That is the law's base variant and reflects your actual value added.
With the Net tax rate you multiply your gross revenue by an industry rate the FTA approves for you – done. No input tax determination, no splitting, no discussion about private use of the company car. The industry rate already includes your industry's average input tax burden as a flat amount.
The net tax rate buys you time. Whether it also costs you money depends on whether your input tax ratio lies above or below the industry average.
Who may use the net tax rate at all
The FTA ties the method to two conditions, which must both be met:
- Taxable annual revenue including tax is at most CHF 5.024 million.
- The tax owed is at most CHF 108,000 per year, calculated as revenue times your industry rate.
In the first year of liability and the year before a switch from the effective method, lower revenue limits additionally apply, graded by the applicable rate:
| Net tax rate | Maximum annual revenue |
|---|---|
| 0,1 % · 0,6 % · 1,3 % · 2,1 % | CHF 5.024 m |
| 3,0 % | CHF 3.60 m |
| 3,7 % | CHF 2.92 m |
| 4,5 % | CHF 2.40 m |
| 5,3 % | CHF 2.04 m |
| 6,2 % | CHF 1.74 m |
| 6,8 % | CHF 1.59 m |
Independently of that, some activities are excluded from the method – the list is in the FTA's VAT Info 12, section 1.3. If in doubt, clarify before registering, not after.
A worked example
An architecture firm has been approved for the net tax rate of 6.2 percent and collects CHF 400,000 including VAT in a half-year. The calculation is as short as can be:
CHF 400,000 × 6.2% = CHF 24,800 tax owed.
Nothing more to do. On customer invoices the firm still shows 8.1 percent – the net tax rate appears nowhere there.
For comparison, the effective method: CHF 400,000 gross contains around CHF 29,972 of sales tax. If input tax were CHF 5,000, CHF 24,972 would be due – practically the same. If it were CHF 12,000, it would be CHF 17,972, about CHF 6,800 less than with the net tax rate. Per half-year.
The one question the decision hinges on
Work out how much input tax you actually paid last year and relate it to your revenue. Then the rule of thumb is:
- Little input tax – say in consulting, coaching, care or services without much material input – speaks for the net tax rate. You would hardly have anything to deduct anyway.
- A lot of input tax – trading with goods purchases, trades with a material share, businesses with high investments – speaks for the effective method. Here the net tax rate gives away hard cash.
- Major purchases in sight? A new vehicle, a machine, an extension: under the effective method you deduct the input tax on it in full, under the net tax rate not at all. That can tip an otherwise close decision.
The second factor is your time. In practice the net tax rate saves several hours per return – with two returns a year instead of four, that adds up. If you keep your own books and have no appetite for input tax delimitations, you may happily buy that peace.
Filing rhythm: what is new since 2025
With the net tax rate you file half-yearly, under the effective method usually quarterly. Since 1 January 2025 a third option has been added: the annual filing for businesses with revenue up to CHF 5,005,000.
The simplification is not free. Those filing annually pay instalments during the year, whose amount the FTA sets based on the last tax period:
- Effective method and flat tax rate: three instalments by 30 May, 30 August and 30 November, minimum amount CHF 500.
- Net tax rate: one instalment by 30 August, minimum amount CHF 1,000.
The request runs via the FTA portal and must be made at the latest 60 days after the start of the tax period, i.e. end of February. Newly registered businesses have 60 days from delivery of the VAT number. It is also required that previous returns were filed and paid on time.
Switching: what happens
A switch is no formality error, but no self-runner either. It is requested in the FTA portal under the filing settings of the “File VAT” service. What matters are the corrections on the current value of your goods and services:
- Effective to net tax rate: The input tax already deducted is charged back – in the last return before the changeover, via item 415.
- Net tax rate to effective: You can claim the input tax not deducted so far – in the first return after the changeover, via item 410.
Minimum periods apply until another switch; they are in VAT Info 12, sections 2.2.2 and 3.2.2. In practice that means: do the maths before the switch, not after.
What the software has to deliver here
Neither method is rocket science, but neither forgives sloppiness with the periods. What counts in practice:
- Support both methods without setting the client file up anew.
- Fill the FTA forms with the right items – 410 and 415 in particular are often forgotten when switching.
- Make expired, still-open periods visible before the deadline passes.
- Under the effective method, separate input tax cleanly by rates: 8.1 percent standard, 2.6 percent reduced, 3.8 percent accommodation.
That is exactly what Accounty covers – both methods, the forms, the period control and the bank reconciliation, without module surcharge. If you look after several mandates, the Fiduciary terms are the more fitting entry point.
Frequently asked questions
From what revenue am I liable for VAT?
In principle from a worldwide revenue of CHF 100,000 per year from taxable supplies. Below that you can register voluntarily – worthwhile above all with high investments, because input tax can then be deducted.
What are the requirements for the net tax rate?
Both conditions must be met: taxable annual revenue including tax may not exceed CHF 5.024 million, and the tax owed may not exceed CHF 108,000 per year. In the first year of liability and the year before a switch, lower revenue limits also apply depending on the applicable rate.
Do I show the net tax rate on my invoices?
No. The customer invoice always shows the statutory rate, normally 8.1 percent. The net tax rate is only the internal figure for your settlement with the FTA.
How often do I have to file?
With the net tax rate half-yearly, under the effective method usually quarterly. Since 1 January 2025 annual filing is also possible if revenue does not exceed CHF 5,005,000 – though instalments then fall due during the year.
What happens when switching methods?
A switch triggers corrections on the current value of goods and services: from the effective to the net-tax-rate method via item 415 of the last return before, in the opposite direction via item 410 of the first return after. The applicable deadlines are in the FTA's VAT Info 12.
Can I switch at any time?
No, minimum periods and application deadlines apply. The request is made in the FTA portal under the filing settings of the “File VAT” service. The exact deadlines are in VAT Info 12, sections 2.2.2 and 3.2.2.
Read next: Accounting software compared · Accounty for fiduciaries · The insider tip among Swiss accounting tools
This article reflects the position as of August 2026 and is for general guidance. The publications of the Swiss Federal Tax Administration and the applicable laws are authoritative. It does not replace individual advice.
Related reading
Swiss VAT return: step-by-step guide
From accruals to filing in the FTA portal.
Read article →Year-end closing for Swiss SMEs: 12-step checklist
From reconciling accounts and accruals through to the tax return.
Read article →Swiss accounting software: 2026 comparison
Ten providers compared head to head – pricing, modules, payroll and VAT.
Read article →All articles on the blog → · Software comparisons → · Accounting by industry →
Both methods, one software
Accounty files under the effective method and the net tax rate – including the FTA forms and period control. All modules for CHF 29 per month.
Try free for 14 days No credit card · cancel monthly · questions? info@accounty.ch