Procedures and requirement: invoicing in Switzerland in 2022

Invoicing is an essential part of business accounting, providing a record of every transaction between suppliers and recipients.

Adrien Gomez Business Development Associate

Invoicing requirements and procedures will depend on the goods and services sold, the value of the transaction, the type of recipient and the size of your company. Want to know the finer details of invoicing? Check out our guide!

When should I issue an invoice?

Definition of an invoice

origin
integrity
authenticity.

contract
bill
credit note
ticket, coupon or till receipt (electronic or from a cash register).

fax
purchase order
delivery note
invoice log
email
invoices sent electronically

The role of invoices in the accounting system

recorded completely, systematically and in a way that can be tracked;
presented clearly and legibly;
justified by accounting documentation
fit for purpose given the size of the supplier business.

Organizations involved

clubs and foundations not registered with the Commercial Register;
foundations exempt from having to appoint an auditor.

NB: This measure applies in particular to businesses under sole proprietorship, partnerships and legal entities.

What information should be on an invoice?

Invoice essentials

Three of the elements required on an invoice are particularly important from a regulatory point of view.

Signature

the deduction of tax;
the collection of tax;
the recovery of taxes

Price

Domestic consideration. If the transaction is carried out exclusively within Swiss borders, prices can be given in Swiss francs only.

International consideration. If the recipient of the goods or service resides abroad, the total amount is given in Swiss francs but also converted into the customer’s original currency.

International business partner. If your business is the recipient in a B2B transaction, amounts are given in the supplier’s currency and the total price must also be converted into Swiss francs.

Helpful tip: Currency conversions are usually done using the official exchange rate published by the Swiss Federal Customs Administration.

Other than bipartite transactions, business accounting generally uses the domestic currency or the currency most commonly used by the business. By default, invoices use one of the Swiss national languages (French, Italian or German), or if more practical, English.

Value Added Tax (VAT)

Standard rate: 7.7%. Applied to most sales on things like cars, jewelry, alcohol and services.

Special rate: 3.7%. Primarily applied to the accommodation and hotel sectors.

Reduced rate: 2.5%. Applied to everyday consumer (edible), health (medicine) and cultural (books and newspapers) goods.

Requesting an invoice

In addition to the requirement for businesses to keep authentic and complete accounts, any recipient of a service above CHF 400 has the right to request an invoice. Invoices can be created by the supplier or outsourced to a subcontractor. Responsibility for the authenticity of the document always rests with the supplier.

NB: As an accounting document, invoices confirm the deduction of any preliminary tax and can be addressed to a physical person or a legal entity.

In this context, the strict minimum is to indicate the supplier (contractor), the customer (recipient) and the service provided. Other mandatory details are as per article 26 of the Swiss Federal Law on VAT.

Invoice settlement

Moratorium annual interest rate of 5% is to be paid by the debtor even where a lower rate of interest is stipulated by the contract.

If the invoice specifies a rate (e.g. the B2B discount rate) above the 5% moratorium rate the higher rate will be observed.

Good to know: Invoices in Switzerland are paid on average within 10-30 days and more than two-thirds are settled within a month.

Invoices demonstrate the authenticity of a consideration;

Invoices only have legal value where both parties are in agreement (supplier and recipient);

Invoices are mandatory for transactions above CHF400;

Invoices can be prepared on paper or electronically (with respect to the principle of full disclosure);

Invoices are prepared in the main currencies of both the supplier and the recipient;

A variable VAT rate applies depending on what is being supplied;

Invoices must be supplied on the request of the recipient;

Overdue payment results in a minimum annual moratorium interest rate of 5%.