hi everyone, calling on the collective knowledge here.
I learned today that it is possible to issue a one-time invoice for services provided without the need to apply VAT, does anyone know if this is correct?
here is the scenario
- was asked to do some strategic consulting work
- based on the time and an hourly rate I came up with a cost of 20K
- customer said OK (now I need to do the work )
Speaking to a colleague he told me that if it is a one-time invoice I can issue it in my personal name and no need to add VAT. (Of course this is taxable as personal income)
I will ask my tax advisor but wondering if anyone knows if this is accurate?
“Businesses with an annual turnover of more than CHF 100,000 must pay value added tax. They must register with the Federal Tax Administration and account for their sales annually.”
If you have a tax number, then you are required to charge and properly document the VAT/MwSt.
If you don't, and someone in the tax offices find out about it, they can audit you and fine you accordingly for taking "Schwarzgeld".
On the other hand ...
If you don't have a tax number, then no. Actually, you are not allowed to charge or show the VAT/MwSt. on your invoices.
If you don't have one, and make numerous material purchases to provide your services, you may wish to have one. It is possible to get one without the 100k per year. Simply ask for it, showing that you make material purchases to provide your services with a yearly sales of 80k or so.
I did, and got the MwSt number right away.
Disclaimer ...
My MwSt. years as self employed were from 2002 through 2018. Don't think things have changed much since then