VAT
definition of entrepreneurial activity
All types of businesses, regardless of their legal status or whether they are for-profit or not-for-profit, may be subject to VAT. Entrepreneurial activity (commercial or professional) refers to a company operating independently for the purpose of generating income through services on a regular and continuous basis.
A commercial or professional activity…
Commercial and professional activities are those that consist in producing goods or providing services to other people with the aim of selling them on the market or using them for private consumption. These activities must generate income, even if they are not necessarily profitable.
Independently…
To be qualified as independent, the company must provide services in its own name, at its own economic and business risks and with complete independence in terms of management and organization of work. Simple employees are not concerned.
This notion is difficult to frame. The AFC considers that you carry out an independent entrepreneurial activity in particular when you:
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make substantial investments
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have your own business premises
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hire your own staff
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share in the profit and bear the losses
Examples of subject activity:
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A sports club that holds an annual party and charges a fee
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A person who regularly and consistently buys and sells goods on an auction platform
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An artist who sells advertising shares in exchange for consideration
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A sportsman who generates profits
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A consortium active in the field of construction
VAT: revenue at least equal to 100,000
or 150,000 francs
An operator must be subject to VAT when the revenue from taxable services during his fiscal year amounts to at least 100,000 francs. This amount increases to 150,000 francs for all non-profit or public utility organizations (cultural and sports associations, social enterprises, foundations, etc.).
What services should be taken into account to know if I am subject to VAT in Switzerland?
Are subject to VAT, all services provided for remuneration by persons subject to tax in Switzerland, provided that no exception is provided for the latter. The list of services excluded from the scope of VAT is available on Info TVA 04.
VAT liability: what chronology?
You are subject to VAT as soon as you start your entrepreneurial activity, take over a business or open a branch if you estimate that the turnover limit of 100,000 francs will be reached in the year following the this startup.
You must make this estimate – at the latest – within 3 months of the start of the activity if you cannot determine whether the limit of 100,000 francs in turnover at the start of the activity.
You must therefore register with the Federal Tax Administration within 30 days, in writing.