Annual VAT settlement possible for small businesses

Smaller companies can apply to settle their VAT annually if their turnover from taxable supplies does not exceed CHF 5’024’000.
The annual settlement must be maintained for at least one tax period and applied for from the Federal Tax Administration. Authorisation can be revoked if the taxable person does not meet their accounting and payment obligations in full. After a change from annual to quarterly or half-yearly billing, it is only possible to return to annual billing after three tax periods.
In the case of annual billing, the tax is provisionally levied in instalments, which are determined and invoiced by the Federal Tax Administration. The instalments are based on the previous year’s turnover. The due dates of the instalments correspond to those of the quarterly and half-yearly statements. Interest on arrears is payable in the event of late payment.