Invoicing in Switzerland: 6 details to include

An invoice is considered settled at the very moment the funds are made available to the payee by their client. However, for the accounting document to be valid and to allow for input tax deduction, certain rules must be observed. Here they are.

Swiss invoice: mandatory details

The standard details required to issue a proper invoice are set out in section 26 of the VAT Act (SR 641.20).

#1 Identity of the signatories

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

Please note : It is advisable for the person responsible for placing the order within a client company to provide their first and last name.

Other details help identify the service-providing company, namely its Business Identification Number (UID). This number has the advantage of also including the VAT number, which, since 1 January 2014, has been shown in the format CHE-123.456-789 VAT.

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

#2 Signatories’ addresses

You are expected to provide the address of the invoice recipient as well as that of the client, whether this is the company’s registered office or a place of residence.

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 supporting evidence.

#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 service (goods or services), its precise description and its scope.

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

Identifying the invoice with a number confirms its uniqueness. This number must comply with several rules, namely:

• follow a chronological sequence;
• follow a continuous sequence;
• be part of a separate series (if the company’s business activities justify 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 service, there are two possible scenarios:

• if the amount is quoted excluding VAT, the applicable Value Added Tax (VAT) rate must also be specified;

• if the amount is quoted inclusive of all taxes, the invoice should state “VAT of X% included”.

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 these work, discover the basics, rates and exemption arrangements of Swiss VAT.

Where the client has been granted a price reduction applicable at the time of sale or service provision, this must be duly stated on the accounting document.

#5 Terms of payment

The payment terms and due date must appear 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 client settles payment promptly. Conversely, it is possible to state that no discount applies (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 client. In this respect, the principle of freedom of evidence applicable in Switzerland grants electronic signatures the same legal validity as handwritten signatures.

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

Swiss invoice: legal aspects

Sending the invoice

Once the rules set out above have been complied with, the company is entitled to send the invoice in paper format, but also (with the client’s agreement) in electronic format (using a QR-invoice, for example) or in scanned form.

Retention of invoices

Article 958f of Book Five of the Swiss Civil Code (Code of Obligations) states that companies are required to keep all accounting books and records, as well as management and audit reports, for a period of 10 years.

As such, throughout this period, the creditor retains the right to ask the invoice debtor (the client) to provide proof of payment.

Invalid invoice

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

For this reason, it is their responsibility to ask the payee, as promptly as possible, to reissue an invoice as soon as they consider it to be invalid.

Although issuing an invoice requires each of the fields mentioned here to be duly completed, the invoicing process as a whole remains more complex.

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