In principle, all companies are subject to VAT, regardless of their legal form. However, if the sales of services subject to VAT (delivery and / or services) is less than CHF 100,000 per year (or £ 150,000 for sports and cultural associations and nonprofit institutions that public utility), the company is exempt from VAT.
He who does not pay tax on value added can not rely on the pre tax. Special limits of turnover for the VAT are also granted to public corporations and in cases of tax on acquisitions).
It is also possible that companies exempt from the VAT decide to submit voluntarily. This option, for example, when a sense own competitiveness suffers from competition subject to tax not subject saw a company can not deduct input tax, which must therefore be included in the selling price.
The voluntary subjection is particularly advantageous for companies that:
show an annual turnover of less than CHF 100'000. - and perform as a subcontractor or service provider for companies subject;
provide the majority of benefits abroad;
do not realize is currently no revenue, but are subject to significant tax deductions prior.
Example of a start-up:
A newly founded startup is active in research. During the startup phase of the activity and the first years of operation, no taxable turnover is achieved, but large investments in the construction of buildings and purchase of business assets are made. This company has the opportunity to freely subject to VAT during the startup phase by giving up the release of liability and can now fully deduct input tax on its investments and other expenses.
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