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Support - VAT

Tutorial

How do I generate my VAT statement?

If your business is subject to VAT, make sure you have accounted for all your expenses and invoices
In the navigation menu, go to “Bookkeeping”, then “VAT” choose the settlement period, click on loop button
The statement is displayed

Where to configure VAT rates?

In the navigation menu, click on “Settings”, and choose “VAT rate” tab. Fiduly keeps up to date vat rates according to the Swiss legislation.

Where to configure VAT?

In the navigation menu, click on “Settings”, and choose “VAT” tab.

- Enter your company’s VAT number
- Choose the VAT calculation method. When registering for VAT with the tax administration, you must choose between the classic method and the simplified method (based on a flat rate of your turnover)
- Choose the default VAT rate on sales to facilitate the drafting of invoices
- Click on “Save”
See the sections below for more information
This configuration can only be made before adding any accounting enteries.

I registered for VAT during the fiscal year, how do I configure the change?

In the navigation menu, click on “Settings”, and choose “VAT” tab.

To the question “Is your company registered for VAT”, change the answer to Yes.
Indicate the date of registration. Fiduly will manage the change automatically.
Enter your company’s VAT number
Choose the VAT calculation method. When registering for VAT with the tax administration, you must choose between the classic method and the simplified method (based on a flat rate of your turnover)
Choose the default VAT rate on sales to facilitate the drafting of invoices
Click on “Update”

See the sections below for more information

How to declare value added tax VAT?

VAT has an effect on your accounting procedures. There are two ways to declare it: Effective declaration (declaration of turnover achieved and input tax incurred): you must submit a declaration every quarter. Declaration using flat tax rates: You must declare your turnover (including the VAT invoiced to your customers) every six months and multiply it by the net tax rate approved by the Federal Administration contributions (AFC). In this way, the input tax is deducted at a flat rate and does not have to be calculated. You must file the VAT return without being requested to do so within 60 days of the end of the reporting period and pay the tax due at the same time. If the FTA owes you a tax credit during a reporting period, the money will be refunded to you within 60 days of receipt of the VAT declaration. The question of when, i.e. in which reporting period, you have to declare the tax and deduct the input tax depends on the form of declaration you choose. Normally, the date on which the invoice is sent or received is decisive. However, you can request permission to report output tax and input tax (VAT collected and VAT paid) in the reporting period in which the invoice is paid. You must comply with the chosen declaration procedure for at least one fiscal period (calendar year).

What is the difference between the two methods of calculating VAT in Switzerland?

All companies that are required to pay value added tax must declare their VAT. However, they must also choose which method they will use: the effective method or the declaration based on flat rates (tax liability rate method). Accounting requirements change depending on the method chosen. What are the differences? Net tax debt rate method (flat rate) Many small businesses opt for this method for their value added tax declarations because it minimizes administrative complexity: on the one hand, they have to submit value added tax rates only every six months – instead of every quarters. On the other hand, the use of the flat tax rate also makes the determination of the withholding tax superfluous. The effective method (actual rate) The effective declaration of value added tax obliges companies to declare the income generated as well as the accumulated anticipated tax (VAT collected and VAT paid). Companies that choose the effective reporting method must submit their tax returns to the Federal Tax Office (ESTV) on a quarterly basis and they have 60 days to do so after the end of each quarter. The same period applies to payment deadlines. How to calculate VAT with the net tax debt rate method? For businesses filing their VAT returns based on flat tax rates, the tax due is determined as follows: Total sales (which includes value added tax charged to customers) is multiplied by the tax rate lump sum taxation (ref. Art. 37 MWSTG). This reduced VAT rate must be approved by the Swiss Tax Administration (ESTV) and depends on the sector of activity of the company. The advantage of this method of VAT declaration is obvious: a fixed amount of tax advance is included and does not have to be declared separately. The Federal Tax Administration offers this simpliﬁed VAT statement for companies whose turnover is less than 5.005 million francs (VAT included) and whose tax liability is a maximum of 103,000 francs per year. These companies can choose to submit VAT on the basis of the flat tax rate, which is lower than the standard rate of 7.7%, if they in return waive the standard procedure for accounting for input VAT, which would otherwise be deducted from VAT levied on turnover (input VAT deduction). This simplified mode of taxation must be maintained for at least one year and VAT returns only have to be filed twice a year (unlike the usual quarterly calculations).