The quarterly VAT return: how to complete it

Anyone liable for VAT in Switzerland must periodically account to the Federal Tax Administration (FTA) for the amounts collected and paid as tax. For most businesses the rhythm is quarterly: four returns a year, each with a precise deadline. It is not a complicated obligation, but it demands method: clean data, deadlines met and the correct choice of calculation method. A wrong or late return costs interest and, over time, the FTA’s attention.

Who files the return and when

VAT liability is triggered once annual turnover from taxable supplies exceeds CHF 100,000. Anyone registered as a taxpayer generally files the return every quarter.

The deadlines follow the pattern of 60 days after the end of the quarter:

Q1 (January–March): by the end of May.
Q2 (April–June): by the end of August.
Q3 (July–September): by the end of November.
Q4 (October–December): by the end of February of the following year.

The return is filed online through the FTA portal. It is possible to request an extension of the deadlines, but the tax payment remains due by the original due date and late payment accrues default interest.

Effective method or net tax rate

There are two ways to calculate the tax owed.

Effective method: you calculate the VAT collected on sales (tax on turnover) and deduct the VAT paid on purchases (input tax). The difference is what you pay to the FTA. It is the most precise method and suits those with many costs bearing VAT.
Net tax rate method (SSS/TDFN): reserved for small businesses within the turnover and tax limits set by the FTA. A reduced flat rate, specific to the sector, is applied to gross turnover, and input tax is not deducted. It greatly simplifies bookkeeping; with this method the return is half-yearly, not quarterly.

The choice should be weighed carefully: the net tax rate reduces administrative work but can prove less advantageous for activities with heavy taxable purchases.

The items of the return (effective method)

When completing the effective return you indicate, in summary:

The total turnover of the quarter, distinguishing taxable, excluded and exempt supplies.
The tax on turnover, calculated at the applicable rates: standard 8.1%, reduced for basic necessities and special for accommodation.
The deductible input tax on purchases of goods, services and investments.
Any corrections and reductions of the deduction (for example for supplies for private use).

The difference between tax on turnover and input tax is the balance to be paid (or the credit in the company’s favour).

Good practice for a clean return

Record VAT as you go, with separate accounts for output tax and input tax: at the end of the quarter the data is already ready.
Reconcile the return totals with the accounts and with the annual turnover.
Keep all purchase invoices: without a supporting document there is no right to deduct input tax.
At year-end carry out the annual reconciliation (finalisation): if the four returns do not match the annual accounts, the difference must be corrected.

Frequent mistakes

Applying the wrong rate to supplies with different treatment.
Deducting input tax on costs without a valid invoice for VAT purposes.
Forgetting the annual finalisation and carrying errors forward over time.
Paying late, accumulating default interest.

In summary

The VAT return is quarterly (half-yearly with the net tax rate), to be filed within 60 days.
Effective method: tax on sales minus input tax on purchases.
Net tax rate: reduced flat rate on gross turnover, with no deduction.
Standard rate at 8.1%; keep supporting documents in order to deduct.
Reconcile the returns with the accounts and finalise at year-end.

How we help

We manage companies’ VAT returns from registration to annual finalisation, choosing the most advantageous method and keeping the accounts ready for every FTA deadline. Entrust your VAT to us.