Invoicing in Switzerland: 6 details to include

An invoice is considered settled as soon as the funds are made available to the payee by their customer. However, for the accounting document to be valid and allow for the deduction of input tax, certain standards must be met. Here are the details.

Swiss invoices: mandatory details

The standard elements required for the issuance of a valid invoice are set out in section 26 of the VAT Act (RS 641.20).

#1 Identity of the signatories

The first requirement is to establish the exact identity of each signatory. The service provider and the client are therefore asked to state their full name and, where applicable, their company name.

Please note: It is advisable for the person responsible for placing orders within a client company to provide their full name.

There are other details that can be used to identify the service provider, namely its Business Identification Number (BIN). This has the advantage of also containing the VAT number, which, since 1 January 2014, has been included in the format CHE-123.456-789 VAT.

The Federal Tax Administration (FTA) states that, depending on the circumstances, the VAT number may take other forms.

#2 Signatories’ addresses

You are required to provide the address of the invoice recipient as well as that of the customer, whether this is the company’s registered office or a residential address.

However, for the sale of goods or the provision of services where the total amount does not exceed CHF 400, neither the address nor the identity of the signatories is required. In such cases, a cash register receipt is sufficient proof of purchase.

#3 Subject matter of the consideration

In order to agree on the subject matter of the consideration, it is necessary to specify its nature, namely the type of consideration (goods or services), its precise description and its scope.

This description must be accompanied by the quantity of each type of good or service, as well as the date or period of the sale (or the date on which the service takes effect) where this differs from the date on which the invoice was signed.

The allocation of a unique number to the invoice confirms its uniqueness. This number must comply with several rules, namely:

• follow a chronological order;
• follow a continuous sequence;
• be part of a separate series (if the company’s business activities warrant such a measure).

#4 Pricing

Each product and/or service line must include the corresponding unit price excluding VAT (excl. VAT).

As regards the total amount of the benefit, there are two possible scenarios:

• if the price is quoted exclusive of VAT, the applicable rate of Value Added Tax (VAT) must also be specified;

• if the price is quoted as ‘all taxes included’, the phrase ‘X% VAT included’ should appear.

Good to know: As a reminder, the three rates applicable in Switzerland are the standard rate (7.7%), the special rate (3.7%) and the reduced rate (2.5%). To better understand how this works, find out about the basics, rates and exemption rules for Swiss VAT.

Should the customer have been granted a discount applicable at the time of sale or service provision, this must be clearly stated on the invoice.

#5 Terms of payment

The payment terms and due date must be stated on the invoice. These are supplemented by the penalty rates applicable in the event of late payment.

Please note: The annual default interest rate provided for in section 104 of the Federal Act is 5%. However, the supplier may set a higher rate, which will then apply.
Discount terms may supplement the basic payment terms, for example where the customer settles the payment promptly. Conversely, it is possible to stipulate that no discount is available (this is referred to as a net invoice).

#6 Signature

Finally, an invoice only becomes legally valid once it has been duly signed by the customer. In this regard, the principle of freedom of evidence applicable in Switzerland grants electronic signatures the same legal validity as handwritten signatures.

In fact, the principle of regularity currently in force includes electronic documents within its definition of a legally admissible accounting document.

Swiss invoices: legal aspects

Sending the invoice

Provided the above rules are followed, the company is entitled to send the invoice in paper format, but also (with the customer’s consent) in electronic format (using a QR-invoice, for example) or as a scanned copy.

Retention of invoices

Article 958f of Book Five of the Swiss Civil Code (Code of Obligations) stipulates that companies must retain all accounting records and documents, as well as management and audit reports, for a period of 10 years.

Thus, throughout this period, the creditor retains the right to ask the invoice debtor (the customer) to provide proof of payment.

Invalid invoice

Although it may seem counterintuitive, it is the customer who bears legal responsibility if an incorrect invoice is issued. Without valid proof of payment, they will be unable to claim input tax deduction.

For this reason, it is the recipient’s responsibility to ask the supplier to reissue an invoice as soon as possible if they believe it to be invalid.

Although issuing an invoice requires all the fields listed here to be correctly completed, the invoicing process as a whole is more complex.

Read the b-sharpe invoicing guide to master every step and optimise your sales process!