Article written by Team Marketing

Swiss VAT is based on clear principles, but applying them in the day-to-day operations of businesses often raises complex questions. This is especially true for two key mechanisms: acquisition tax and VAT liability. These obligations affect a wide range of organisations — including those that, at first glance, may believe they fall outside the scope of VAT, such as certain NGOs benefiting from tax relief, unaware that this has no impact on their VAT position.

At Synergix, we are committed to making tax rules easier to understand and apply in real life. This article offers the essential guidance to help you grasp how acquisition tax works, integrate it into your processes, and avoid costly mistakes.

Acquisition tax: a frequently underestimated obligation

When a Swiss company purchases a service from a foreign provider, Swiss VAT does not appear on the invoice. However, if the service is used in Switzerland, the company must declare and pay the VAT itself. This is the principle of reverse charge, which triggers the acquisition tax.

This mechanism helps prevent a distortion of competition between foreign suppliers (not subject to Swiss VAT) and domestic providers. It ensures that VAT is paid where the service is actually consumed. In other words, if the service benefits a recipient based in Switzerland, then VAT is due in Switzerland—regardless of where the supplier is established.

For more details, see Article 45 et seq. of the Swiss VAT Act (LTVA) and the relevant articles in the VAT Ordinance (OTVA).

Services concerned: practical, day-to-day cases

The types of services most commonly subject to acquisition tax include:

  • Online advertising (Google Ads, Facebook, LinkedIn)
  • Remote consulting, coaching, strategy, or legal services
  • International fiduciary and accounting services
  • Access to SaaS platforms or digital tools hosted abroad
  • Data processing, hosting, and cloud services
  • Hiring staff through a foreign company for work abroad
  • Transfer or licensing of intangible rights (patents, licences)
  • Self-study courses and, from 01.01.2025, distance learning courses (online courses)
  • Services related to event organisation
  • Purchase of emission rights or environmental certificates

It is common for Swiss businesses to use these services via international platforms or specialised foreign providers. In many cases, the costs are paid on a recurring basis (monthly or annually), often by credit card—making them easy to overlook in routine accounting.

2025 update: expansion of the acquisition tax scope

As of 1 January 2025, the scope of acquisition tax will be further extended. It will now explicitly include the transfer of the following items, whether the supplier is based in Switzerland or abroad:

  • Emission rights
  • Emission reduction certificates and attestations
  • Guarantees of origin for electricity
  • Other similar rights, certificates, or attestations

From that point on, any company receiving such rights or documents for consideration must, unless specifically exempt, declare the corresponding VAT under the acquisition tax regime.

This development reflects the growing importance of markets related to sustainability, energy, and carbon neutrality in the real economy.

The CHF 10,000 threshold: a key rule for non-VAT registered entities

Even if you’re not registered for VAT, you may still be affected. As soon as the total value of relevant foreign services exceeds CHF 10,000 per year, you are required to:

  • Voluntarily register with the Swiss Federal Tax Administration (FTA) by the end of February (there is no automatic notification)
  • Pay VAT on these services
  • Without any right to input VAT deduction

This rule is often overlooked by associations, NGOs, micro-enterprises, or start-ups that rely on digital services paid by credit card—often in small, fragmented amounts (such as SaaS subscriptions, collaborative platforms, digital ads, or international consultants).

VAT-registered businesses: integrating the declaration into your processes

If your business is already registered for Swiss VAT, you are required to:

  • Identify foreign services subject to acquisition tax
  • Include them in your periodic VAT returns (monthly, quarterly, or semi-annually) and, from 1 January 2025, in the annual return—provided you have notified the tax authority of your choice to file annually
  • Reverse charge the applicable VAT (using the standard rate, which is 8.1% in 2025)
  • And, if the service is used for a taxable activity, reclaim the VAT declared

This self-taxation process is fiscally neutral—but only if it is properly tracked, documented, and integrated into your accounting systems.

Special cases: what is not subject to acquisition tax

Some services are explicitly excluded from the scope of acquisition tax:

  • Services outside the scope of Swiss VAT: such as certain medical, educational, cultural or charitable activities
  • Exempt services under Swiss law: including specific insurance, credit or investment operations, particularly in the financial sector

It’s important not to confuse “no VAT charged” with “no tax to declare.” The assessment must always be based on the type of service and the place of consumption, not the appearance of the invoice.

If you forget: what are the risks?

Failing to declare or incorrectly declaring acquisition tax can lead to:

  • A retroactive adjustment covering the past five years
  • Payment of the VAT due, plus late interest (4.5% as of 1 January 2025)
  • Denial of input VAT recovery, even if you are VAT-registered
  • Administrative fines in cases of serious or repeated negligence

This is why it’s essential to maintain clear traceability of foreign service purchases and to formalise an internal procedure for identifying and declaring such transactions.

Best practices to implement

  • Carry out a quarterly review of digital or cross-border service purchases
  • Track the cumulative value of foreign services for non-VAT-registered entities
  • Create a dedicated accounting ledger for reverse charge VAT entries
  • Systematically archive foreign invoices with a note specifying their use in Switzerland
  • Train relevant teams (procurement, finance, management) to identify applicable cases

Frequently Asked Questions – FAQ

Are all foreign invoices subject to acquisition tax?

No. The tax only applies if the service is used in Switzerland and falls under the place-of-recipient principle. Some services (outside the scope or VAT-exempt) do not trigger the tax.

I’m not VAT-registered. Do I still need to worry about this?

Yes. If the total value of your foreign service purchases exceeds CHF 10,000 in a year, you must pay VAT on those services—even if you don’t have a Swiss VAT number.

Do I have to declare online subscriptions (SaaS) or Facebook ads?

Yes. If the provider is based abroad and the service is used in Switzerland, you must declare the acquisition tax. This applies even to recurring or card-based payments.

What if I haven’t declared anything in recent years?

You can voluntarily regularise your situation with the FTA. The sooner you act, the simpler it is. What matters most is taking action.

Can I recover this VAT?

Yes—if you’re VAT-registered, the service is used for a taxable activity, and the reverse charge has been correctly applied. Otherwise, no.

In summary

Acquisition tax is a key pillar of coherence within the Swiss VAT system. It ensures that all services—whether provided by local or foreign suppliers—are treated fairly. As of 2025, its scope will expand further, particularly in areas linked to energy, sustainability, and environmental impact.

For all organisations, the message is clear: it’s better to anticipate than to correct. A rigorous, well-documented and regularly reviewed approach can turn this technical obligation into a simple routine—especially when supported by clear, reliable fiscal guidance that aligns with Swiss legal requirements.

Further reading: key official resources

To verify the information, anticipate your obligations, or prepare a regularisation, here are the main legal and administrative sources available online:

These resources will help you validate technical details, identify exceptions and thresholds, and understand the current administrative procedures.

Keep Up to Date With Our Latest Blog, News & Events.