What is the net tax debt rate?
It is a simplified VAT accounting method in Switzerland. You apply a single flat rate to your turnover; the VAT due to the FTA follows directly.
Sevyos · Suisse
VAT at the net tax debt rate (flat rate): how it works
The simplified VAT accounting method for freelancers and SMEs in Switzerland.
In short
The net tax debt rate (in German, Saldosteuersatz) is a simplified VAT accounting method offered by the Swiss Federal Tax Administration (FTA) to small businesses. Instead of tracking VAT on every purchase, you apply a single flat rate to your turnover. The result: far less admin.
Effective method vs flat rate
- Effective method — you report the VAT collected on your sales, minus input tax (VAT paid on your purchases). It is precise, but requires tracking VAT on every expense.
- Net tax debt rate — you apply a flat percentage to your turnover. You no longer track input tax. Filing becomes much faster.
Who is the flat rate for?
The flat rate targets freelancers and SMEs whose turnover and VAT due stay below thresholds set by the FTA. The flat rate depends on your industry. As these thresholds and rates change, always check the current values on the FTA website or with your trustee.
Pros and cons
- Pro — lighter VAT accounting, fewer entries, less frequent filing.
- Con — if you have large investments with a lot of recoverable input tax, the effective method may be more advantageous.
Invoice and track VAT simply
Whether you use the effective method or the flat rate, the key is to issue correct invoices and keep track of VAT. A mobile app like Sevyos handles both methods and prepares a clean file for your accountant.
Frequently asked questions
What is the difference between the effective method and the flat rate?
With the effective method, you offset VAT charged against VAT paid on purchases. With the flat rate, you apply a flat percentage to your turnover, without tracking input tax.
Who can use the flat rate?
SMEs and freelancers whose turnover and VAT due stay below the thresholds set by the FTA. Rates depend on the industry. Check with the FTA or your trustee.
Does Sevyos handle VAT at the flat rate?
Yes. Sevyos lets you invoice and track VAT using the effective method or the net tax debt rate, both recognised by the FTA.