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Voluntary VAT Registration: When Is It Worth It?

Even below CHF 100'000 turnover, you can voluntarily register for VAT. Learn when it is worthwhile, how to register and what obligations arise.

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einzly Redaktion
Tax & Finance Editorial
7 min read
2 Mar 2026

01What Is Voluntary VAT Registration?

In Switzerland, the VAT obligation only becomes mandatory from a worldwide annual turnover of CHF 100'000 (Art. 10 MWSTG). Those below this are exempt from VAT. However, the law offers an option: voluntary submission to the tax obligation under Art. 11 MWSTG.

With voluntary registration, you treat your business as if you were VAT-liable: You charge your customers VAT, settle with the FTA — and in return can claim the input tax on your business expenses.

Legal basisVoluntary registration is regulated in Art. 11 MWSTG. Any business that has a registered office or establishment in Switzerland and provides taxable services can register voluntarily — regardless of turnover level.

02When Is Voluntary Registration Worthwhile?

Voluntary VAT registration is not an end in itself — it is only worthwhile in certain situations. Here are the most important scenarios where you can benefit:

  1. High investments in the start-up phase: You are buying computers, office furniture, software, vehicles or tools. You pay 8.1% VAT on all these purchases. With registration, you reclaim this as input tax
  2. B2B clients: Your clients are mainly businesses that are themselves VAT-liable. For them, the VAT on your invoice makes no difference (they deduct it as input tax) — but you appear more professional and can claim input tax
  3. Importing goods or services: If you regularly purchase goods or services from abroad, import tax or acquisition tax applies. As a VAT-registered business, you can deduct this as input tax
  4. High ongoing business costs: Rent, insurance, external service providers, software subscriptions — you pay VAT on all these expenses, which you cannot reclaim without registration
  5. Turnover close to the threshold: If you generate CHF 80'000–99'000 in turnover and will soon reach the threshold, early registration can make sense to claim input tax from the start

Practical example: Lisa is a photographer and is starting her self-employment. In the first year, she purchases camera equipment for CHF 12'000, a computer for CHF 3'500 and software for CHF 1'800. She pays 8.1% VAT on this CHF 17'300 = CHF 1'401. With voluntary registration, she reclaims this amount as input tax.

When is it NOT worthwhile?If your clients are mainly private individuals, the VAT on your invoice becomes a disadvantage: Your prices become 8.1% more expensive (or your margin shrinks). At the same time, you have few business expenses with input tax. In this case, registration is usually unattractive.

03Calculation Example: Is Registration Worthwhile?

To simplify the decision, here is a direct comparison — with and without VAT registration at an annual turnover of CHF 60'000 and business costs of CHF 15'000:

ItemWithout VATWith VAT (effective method)
Invoice amount to clientsCHF 60'000CHF 64'860 (incl. 8.1% VAT)
VAT collected—CHF 4'860
Business costs (net)CHF 15'000CHF 15'000
Input tax paid—CHF 1'215
VAT payment to FTA—CHF 3'645 (4'860 – 1'215)
Net effect for youCHF 0+ CHF 1'215 input tax reclaimed

In this example with B2B clients, registration yields a benefit of CHF 1'215 per year — this is the input tax on your business costs that you cannot reclaim without registration. The higher your business costs, the greater the benefit.

Flat tax rate as an alternativeWith the flat tax rate method (e.g. 5.9% for consulting), the calculation would be different: You pay 5.9% on gross turnover to the FTA but charge 8.1% on your invoices. You keep the difference of 2.2% — without input tax deduction. This is simpler but less advantageous when you have high costs.

04Registration with the FTA: How It Works

Registration for voluntary VAT is done with the Federal Tax Administration (FTA). The process is straightforward:

1
Fill in the online form

Go to estv.admin.ch → VAT → Registration. Fill in the registration form with details about yourself, your activity and estimated turnover. Select 'voluntary submission' as the reason.

2
Choose the accounting method

Decide between the effective method (input tax deduction possible, quarterly settlement) and the flat tax rate method (lump-sum, semi-annual, simpler). With high business costs, the effective method is recommended.

3
Determine the accounting period

The standard is quarterly settlement for the effective method and semi-annual for the flat tax rate. You can also request monthly settlement, e.g. if you regularly have high input tax credits.

4
Receive VAT number

After registration, you receive your VAT number in the format CHE-XXX.XXX.XXX MWST. You must include this on all invoices.

5
Adjust invoices

From the registration date, you must show VAT separately on every invoice — with the tax rate, tax amount and your VAT number.

Retroactive registration possibleAccording to Art. 14 MWSTG, the FTA can grant retroactive registration under certain conditions. This is useful, for example, if you made large investments at the start of your activity and still want to claim the input tax on them. The retroactive effect is limited to the beginning of the current tax period.

05Flat Tax Rate vs. Effective Method

With voluntary registration, you must choose an accounting method. The choice has a major impact on the effort and the financial advantage. Details about the flat tax rate method can be found in our separate article.

CriterionEffective MethodFlat Tax Rate
Input tax deductionYes — every VAT paid is deductibleNo — covered by the lump sum
Settlement frequencyQuarterlySemi-annually
Bookkeeping effortHigher (recording input tax)Lower (only turnover relevant)
Tax rate8.1% / 2.6% / 3.8% (depending on service)Industry-specific (e.g. 5.9% consulting, 1.2% food retail)
Suitable forHigh business costs, investmentsLow costs, simple settlement
RequirementNoneTurnover below CHF 5.02 million, tax liability below CHF 103'000
Switching possibleTo flat rate at any timeSwitch back only after 3 years

Rule of thumb: If your business expenses (incl. VAT) amount to more than 25–30% of your turnover, the effective method is worthwhile. With lower costs, the flat tax rate is usually simpler and financially similarly attractive.

einzly supports both methodsIn einzly, you can choose whether to use the effective method or the flat tax rate. einzly automatically calculates the VAT on each invoice and shows you the figures you need to enter on estv.admin.ch for the settlement — regardless of the method.

06Obligations after Registration

With voluntary registration, you assume the same obligations as a mandatorily VAT-liable business. How to correctly submit the VAT return to the FTA is explained in a dedicated article. The most important points:

  • Show VAT on invoices: Every invoice must include the tax rate, tax amount and your VAT number (CHE-XXX.XXX.XXX MWST)
  • Settle regularly: Quarterly (effective method) or semi-annually (flat tax rate). Settlement is done via the FTA's online portal. Deadline: 60 days after the end of the settlement period
  • Remit VAT: The VAT owed (VAT collected minus input tax) must be transferred to the FTA within the deadline. Late payment interest: 4% per year
  • Retain receipts: All invoices and receipts must be retained for 10 years — as proof for the input tax deduction
  • Keep VAT-compliant books: Income and expenses must be recorded so that the VAT is traceable at all times
Note minimum durationVoluntary registration applies for at least one full tax period (calendar year). You can cancel it at the earliest after this minimum period at the end of a settlement period. An immediate deregistration after a few months is therefore not possible.

07Cancelling Voluntary Registration

If voluntary VAT registration is no longer worthwhile, you can cancel it. Deregistration is done in writing to the FTA. The following rules apply:

  • Minimum duration: Voluntary registration must be maintained at least until the end of the current tax period (calendar year)
  • Deregistration: Cancellation can be effective at the end of a settlement period (quarter-end for effective method, half-year end for flat tax rate)
  • Deemed supply tax: Upon deregistration, a deemed supply tax on remaining business assets may be due — e.g. on inventory, office furniture or vehicles on which you claimed input tax
  • Final settlement: You must prepare a final settlement that closes all outstanding items

Before deregistering, check whether the deemed supply tax on your business assets negates the benefit of deregistration. With larger asset values (e.g. vehicle), it may be worthwhile to maintain the registration.

08Frequently Asked Questions about Voluntary VAT Registration

Yes, in principle registration is possible even without turnover — e.g. during the start-up phase when you are making investments and want to claim input tax. The requirement is that you intend to provide taxable services. The FTA checks during registration whether a business activity exists or is planned.
Not for B2B clients, as they can deduct the VAT as input tax. For private clients (B2C), the final price increases by 8.1% — unless you adjust your net prices downward accordingly. In that case, however, your margin decreases.
With retroactive registration (under Art. 14 MWSTG), you can claim input tax on purchases since the beginning of the current tax period. For purchases further back, an input tax deduction on the current fair value of capital goods is possible (input tax adjustment under Art. 32 MWSTG).
Processing typically takes 2–4 weeks. You then receive your VAT number and the access credentials for the online portal. In urgent cases, a phone call to the FTA can speed up the process.
Yes. From the time of registration, you must show VAT separately on all invoices for taxable services — with the tax rate, tax amount and your VAT number. Invoices without VAT disclosure are only permissible for tax-exempt services (e.g. exports).
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