Does a start-up have to pay VAT?
If the annual turnover exceeds CHF 100’000, a company has to pay VAT. By all means it is possible to pay VAT voluntarily. In some cases this can be profitable, especially by reason of pre-tax allowance.
During the first year of a company, it is maybe demanding to forecast the annual turnover. In case that there is no informative basis, another evaluation is necessary after three months. The turnover of this three month multiplied by four shows the annual turnover, which has to be assumed. If it is over CHF 100’000, the taxpayer has two options:
– Paying VAT from now on, that is to say from the fourth month on after establishing the company.
– Paying VAT backdated, that is to say from the first day on after establishing the company.
Preferably you establish or convert your company with STARTUPS.CH. STARTUPS.CH will provide you with professional guidance before and after the foundation.
Here you will be able to apply for a counselling interview and to request free documentation.
