What if I only exceeded it temporarily?

You can deregister from VAT if your annual revenue falls below CHF 100,000 and is expected to stay below it for the foreseeable future. However, you must have been registered for at least one tax period.

Can I include VAT retroactively on old invoices?

No. If you didn't charge VAT, you can't bill it retroactively. The VAT is calculated from your revenue — not in addition to it. This means the VAT effectively reduces your net revenue for that period.

What happens when I exceed CHF 100,000 in revenue?

If you exceed the VAT threshold as a sole proprietor, you must register within 30 days. Here's what happens step by step — and what you should prepare for.

2 min read

Registration within 30 days

Once you exceed CHF 100,000 in revenue from taxable services within 12 months, you must register with the Federal Tax Administration (FTA) within 30 days. After that, you will receive a VAT number by mail — from that point, it must appear on all your invoices.

VAT is due retroactively

VAT is not owed from the date of registration, but from the point you crossed the threshold. If you noticed on August 1 that you exceeded CHF 100,000 back in June, you owe VAT on all revenue since crossing the threshold — plus interest. The back-payment can be several thousand francs.

Net tax rate as a lifeline

When registering you choose the method: net tax rate (if eligible) or effective. With the net tax rate you don't have to recalculate input VAT for every past transaction — you pay a flat percentage on your revenue since crossing the threshold. This keeps the back-payment manageable and is usually the cheapest option for service providers with little input VAT.

Preparing your invoices

From the moment you receive your VAT number, every invoice must show: your VAT number, the applicable VAT rate, and the VAT amount. If you use the net tax rate method, you must also include a note stating this on your invoices. Inform your clients that your invoices will now include VAT.

Accurate as of: The rates and amounts mentioned in this article reflect the state as of 6 August 2026. They are for information only and do not replace tax or legal advice. For binding information, contact the Swiss Federal Tax Administration (ESTV), your cantonal tax office, or a fiduciary.

Frequently asked questions

What if I only exceeded it temporarily?: You can deregister from VAT if your annual revenue falls below CHF 100,000 and is expected to stay below it for the foreseeable future. However, you must have been registered for at least one tax period.
Can I include VAT retroactively on old invoices?: No. If you didn't charge VAT, you can't bill it retroactively. The VAT is calculated from your revenue — not in addition to it. This means the VAT effectively reduces your net revenue for that period.