VAT when selling digital documents in Switzerland
5 min readUpdated
Anyone selling digital documents will sooner or later face the question of VAT. This article gives an overview of the key points. It does not replace advice – for your specific case, contact the Swiss Federal Tax Administration (FTA) or a fiduciary.
When am I liable for VAT?
In Switzerland you generally become liable for VAT once you generate at least CHF 100,000 of turnover from taxable supplies within a year – counted worldwide, not just in Switzerland. Below that you are exempt, but you can register voluntarily.
For many who sell e-books or templates on the side, that settles the matter for now. Appraisal offices and consultancies, on the other hand, are often already liable for VAT – then PDF sales belong in the VAT return too.
Which rate applies?
Since 2024 Switzerland has three rates: 8.1% (standard rate), 2.6% (reduced rate) and 3.8% (accommodation). For digital documents the first two are relevant:
- Expert reports, assessments, consulting, commissioned studies: usually the standard rate, as these are services.
- Electronic books, newspapers and magazines without advertising character: may be subject to the reduced rate. Whether your document counts as an “electronic book” depends on the type of content.
- Templates, sewing patterns, software-like content: are often not treated as books. If in doubt, clarify the classification with the FTA.
Buyers abroad
For services, the recipient principle generally applies: what matters is where the buyer has their registered office or residence. Sales to buyers abroad are therefore often not subject to Swiss VAT.
But note: other countries may have their own rules. The EU, for example, may require providers of electronic services to private individuals in the EU to register, including providers from Switzerland. If you regularly sell to private customers in the EU, you should look into this.
What does this mean for your prices?
On the PayDoc payment page your price is shown with the note “incl. any VAT charged by the seller”. This means the price shown is the final price for the buyer. If you are liable for VAT, the tax is included and you account for it with the FTA.
As the seller you remain responsible for correct accounting. The sales overview in your dashboard and the reports in your Stripe account help you with this.
Tip: set your prices so that they still work for you if you later become liable for VAT – then you will not have to raise prices.