Value-added tax (VAT)
VAT is a consumption tax charged on supplies of goods and services, with businesses generally collecting tax and deducting input tax.
Value-added tax is levied on consumption through taxable supplies by businesses and, in many systems, on imports. Switzerland applies VAT at federal level, with registration obligations for businesses that meet relevant thresholds or carry out taxable activities. Taxable persons charge output VAT and may deduct input VAT used for business purposes, subject to exclusions and formal requirements. Cross-border services, exemptions, reduced rates, and place-of-supply rules are often decisive for compliance and pricing.