01What Is the Input Tax Deduction?
When you purchase goods or services as a business owner, you pay VAT on them -- this is called input tax (Vorsteuer). The input tax deduction means you can subtract this paid VAT from your own VAT liability. You only pay the difference between the VAT you collected from your customers and the VAT you paid on your purchases.
02Who Can Claim the Input Tax Deduction?
Not everyone is entitled to deduct input tax. You must meet the following requirements:
- You are VAT-registered -- either mandatory (revenue above CHF 100,000) or voluntarily registered.
- You use the effective settlement method -- with the flat tax rate method, the input tax is already factored into the reduced rate.
- The purchases serve your business activity -- private expenses are excluded.
- You have a proper invoice with VAT details -- the receipt must include the VAT number, tax rate, and tax amount.
03What Can You Deduct as Input Tax?
In principle, you can deduct the VAT on all business-related purchases. Here are the most important categories:
| Category | Examples | Deductible? |
|---|---|---|
| Materials & Goods | Office supplies, raw materials, merchandise | Yes |
| Services | Accounting, legal advice, IT support | Yes |
| Software & Subscriptions | Cloud software, hosting, licences | Yes |
| Rent (business) | Office, studio, workshop | Yes |
| Vehicle costs | Leasing, repairs, fuel (business share) | Yes (proportional) |
| Entertainment | Client dinners, team meals | Yes (with limitations) |
| Private purchases | Groceries, clothing, leisure items | No |
| Tax-exempt services | Health insurance, medical costs, bank fees | No (no VAT on them) |
04Formal Requirements: What Must Be on the Receipt?
To deduct input tax, the receipt must contain certain information. The FTA checks this carefully during audits.
- Name and address of the supplier
- Supplier's VAT number (CHE-xxx.xxx.xxx MWST)
- Date of delivery or service
- Type, subject, and scope of the service
- Amount (price)
- Tax rate (8.1%, 2.6% or 3.8%)
- Tax amount (or note 'incl. VAT')
05How to Calculate Input Tax
The calculation is straightforward when you know the VAT paid per receipt:
For each business expense, note the VAT amount and tax rate (8.1%, 2.6% or 3.8%). If the receipt only says 'incl. VAT', calculate backwards: amount / 1.081 * 0.081 = VAT portion.
At the end of each quarter, add up all VAT amounts from your business expenses. This is your input tax.
In the VAT return on estv.admin.ch, enter the input tax in field 400. It is deducted from your VAT liability.
| Receipt | Net Amount | VAT Rate | VAT (Input Tax) |
|---|---|---|---|
| Office supplies | CHF 200.00 | 8.1% | CHF 16.20 |
| Software subscription | CHF 50.00 | 8.1% | CHF 4.05 |
| Printing costs | CHF 800.00 | 8.1% | CHF 64.80 |
| Accountant | CHF 500.00 | 8.1% | CHF 40.50 |
| Total input tax | CHF 125.55 |
06Common Mistakes with Input Tax Deduction
These mistakes lead to overpaying VAT -- or receiving back-charges during an audit:
- Forgetting input tax. Many self-employed people collect their receipts but forget to claim the VAT on them. Every receipt without an input tax deduction is money you're giving away.
- Receipts without VAT number. If the supplier's VAT number is missing from the receipt, the FTA can deny the input tax deduction. Make sure your suppliers issue proper invoices.
- Deducting private expenses. The FTA checks during audits whether expenses were truly business-related. Declaring private purchases as business expenses is not allowed and can lead to back-charges plus default interest.
- Input tax on tax-exempt services. Health insurance premiums, bank fees, or medical costs don't include VAT. There's nothing to deduct here.
- Wrong tax rate. When calculating VAT backwards, use the correct rate. Groceries have 2.6%, not 8.1%.
07Input Tax Deduction with einzly
With einzly, the input tax deduction runs on autopilot. When you record your expenses, einzly automatically detects the VAT rate and calculates the input tax. At the end of the quarter, you get a ready-made summary with all the figures for the FTA.
- Automatic VAT detection. einzly assigns the correct VAT rate to each receipt -- 8.1%, 2.6% or 3.8%. No more manual lookups.
- AI receipt scanner. Photograph your receipt and einzly automatically extracts supplier, amount, date, category, and VAT rate. No manual typing required.
- VAT summary. At the end of each settlement period, you see at a glance: VAT owed, input tax, and the difference. Transfer the figures directly to the FTA form.
- Receipts digitally archived. All receipts are securely stored and instantly available during an audit. This also fulfils the 10-year retention obligation.