Key points at a glance
- You keep business records and receipts for 10 years - electronic storage is allowed as long as they remain complete, unaltered and legible.
- You become liable for VAT once your turnover from taxable supplies reaches CHF 100'000 per year (Art. 10 para. 2 let. a of the Value Added Tax Act, VATA). You must register with the Federal Tax Administration FTA (ESTV) within 30 days.
- With the effective method, you deduct input tax; with the net tax rate (Saldosteuersatz), your VAT accounting is simpler, but input tax is covered by a flat rate.
- If you record receipts as they come in instead of once a year, you avoid the last-minute stress before your VAT return and your tax return.
What kind of bookkeeping do you need?
Sole proprietorships and partnerships with less than CHF 500'000 in revenue in the last financial year only need to keep records of income and expenses and of their financial position (Art. 957 of the Swiss Code of Obligations, CO) - known as simple income-and-expense accounting ("Milchbüchlein"). From CHF 500'000 in revenue, and for all legal entities (GmbH, AG), double-entry bookkeeping with a balance sheet and an income statement is required.
Even with simple bookkeeping, every income and expense item needs a receipt.
Keeping receipts correctly
You must keep your accounting records, supporting documents and annual reports for 10 years (Art. 958f CO). The period starts at the end of the financial year - so a receipt from March 2026 must be available until the end of 2036. For records relating to real estate, VAT law requires 20 years.
Can I keep receipts in digital form only?
Generally, yes. Supporting documents may be stored electronically if they are complete, unaltered and legible at all times and you can prove they haven't been changed since (Accounting Records Ordinance (GeBüV), in German). A folder of phone photos on your desktop probably won't meet this standard - a filing system with date, source and the unaltered original file will. For special cases, such as customs documents, check with your accountant (Treuhand) whether you still need the paper original.
Example: the receipt that never gets lost
Lea is a self-employed physiotherapist. She takes a photo of every receipt right after a purchase and forwards supplier invoices by email to a dedicated receipts inbox. At the end of the month, all she has to do is check the extracted amounts. At year-end, she sends her accountant a ZIP file with all receipts and the income statement - instead of a box full of paper.
When do you have to register for VAT?
You become liable for VAT as soon as your turnover from taxable supplies reaches at least CHF 100'000 within one year - in Switzerland and abroad combined. You then have 30 days to register with the FTA (Art. 66 VATA). Below that threshold, you are exempt from VAT liability (Art. 10 para. 2 let. a VATA), but you can register voluntarily (Art. 11 VATA) - which makes sense, for example, if you invest a lot and want to recover the input tax.
| Rate | Amount | Applies to |
|---|---|---|
| Standard rate | 8.1% | most goods and services |
| Reduced rate | 2.6% | food, books, newspapers and medicines, among others |
| Special rate | 3.8% | accommodation (overnight stay with breakfast) |
Effective method or net tax rate?
Once you are liable for VAT, you choose one of two accounting methods.
Effective method
You account for VAT on your revenue and deduct the input tax, i.e. the VAT you paid yourself on purchases and investments. For this, you need a proper receipt showing the VAT for every purchase. VAT returns are normally filed quarterly. Since 2025, if your turnover is no more than CHF 5'005'000, you can also apply to file annually (Art. 35 para. 1bis VATA); you then pay installments during the year.
Net tax rate
You multiply your revenue (including VAT) by an industry-specific rate set by the FTA (rates page in German) - for example a lower rate for retail and a higher one for consulting. This covers input tax at a flat rate, so you don't have to prove it item by item. VAT returns are filed semi-annually, or annually on request. This method is available up to CHF 5'024'000 in turnover and CHF 108'000 in tax payable per year (Art. 37 VATA). You still charge your customers the regular VAT rate on your invoices.
| Effective method | Net tax rate | |
|---|---|---|
| Input tax | deducted item by item | included in the rate as a flat amount |
| Effort | higher: every receipt counts | lower: only revenue counts |
| VAT return | quarterly (or annually on request) | semi-annually (or annually on request) |
| Suits | high purchases and investments | service providers with little input tax |
You can only switch methods after a minimum period. So run the numbers with your own figures before you choose - or ask your accountant.
You file the return electronically in the FTA ePortal. The deadline is 60 days after the end of the reporting period (Art. 71 VATA); your payment must also have arrived by then.
How it works in Easly
In Easly, you record receipts as they come in, so your VAT return is ready whenever you need it:
- Record a receipt in seconds: take a photo with your phone, upload a PDF or forward the invoice to your receipts inbox. Easly picks it up via IMAP or Microsoft 365 - only from senders you have approved.
- Extracted automatically: With your own Anthropic (Claude) or OpenAI (ChatGPT) account, Easly extracts the supplier, date, amount, VAT and category. Without AI access, you enter the details manually.
- No duplicates, nothing lost: Duplicate receipts are flagged, and nothing is deleted. The original file is stored unaltered, encrypted and backed up daily.
- VAT return under both methods: effective method or net tax rate, as PDF and Excel. You transfer the figures into the FTA ePortal; the dashboard reminds you of the deadline. Input tax only counts where the receipt shows the VAT; Easly converts amounts in foreign currencies into Swiss francs at the daily exchange rate.
- At year-end: income statement, VAT return, receipt archive with all original files and the complete export as a ZIP file - for you or your accountant. Easly doesn't fill in the tax return itself.
Frequently asked questions
How long do I have to keep receipts?
10 years from the end of the financial year (Art. 958f CO). For records relating to real estate, VAT law requires 20 years.
Can I throw away paper receipts after scanning them?
Generally, yes, as long as the electronic copy is stored complete, unaltered and legible at all times. For special cases such as customs documents, it's best to check with your accountant whether you still need the original.
At what turnover do I become liable for VAT?
From CHF 100'000 in turnover from taxable supplies within one year, in Switzerland and abroad combined (Art. 10 para. 2 let. a VATA). You must register with the FTA within 30 days.
Which method is better for a sole proprietorship?
For service providers with few purchases, the net tax rate is often simpler. If you buy or invest a lot, the effective method is usually better, because input tax is fully deductible. Run the numbers with your own figures before you decide.
Information as of: see above. Sources: Swiss Code of Obligations (Art. 957 and 958f CO), Accounting Records Ordinance (GeBüV, in German), Value Added Tax Act (VATA) and the publications of the FTA. This article is not a substitute for tax or accounting advice.