Services for NGOs

As a general rule, anyone who operates a business, even non-profit, regardless of its legal form and the aim pursued, is required to register for VAT from the moment he or she achieves an annual turnover of at least CHF 100’000 from services provided in Switzerland territory and abroad which are not excluded from the scope of the tax (art. 10 al. 1 LTVA).

In the special case of non-profit sports and cultural organizations, as well as public utility institutions that meet the conditions for exemption from direct taxes according to art. 56 lit. g LIFD, the threshold for compulsory VAT liability has been raised to CHF 250’000 of annual turnover (art. 10 para. 2 letter c LTVA).

VAT registration forms are available on the Federal Tax Administration’s website.

The decisive turnover includes all income from services provided in Switzerland and abroad that are not excluded from the scope of tax under the VAT Act. If the services provided are paid for in kind (goods, services in compensation), the market value of the service provided in return must be taken into account in the decisive turnover.

Statutory contributions which non-profit organizations pursuing political, union, economic, religious, patriotic, philosophical, philanthropic, ecological, sporting, cultural or civic objectives collect from their active members in return for an identical benefit for each member or category of members (e.g. newspaper, entrance fee, discount, etc.) are excluded from the scope of taxation and must not be taken into account in the decisive turnover for liability to VAT (art. 21(2) c. 13 LTVA).

Subsidies and other contributions from public authorities must also not be taken into account in the decisive turnover, even when they are paid on the basis of a service mandate (art. 18 al. 2 let. a LTVA). Subsidies and other contributions from public authorities are deemed to be services in money or appreciable in money which are not provided in the context of an exchange of services (see also art. 29 OTVA).

The same applies to donations freely granted by third parties other than public authorities. The fact of mentioning the donation one or more times in a neutral form in a publication does not constitute supply of an advertising service in favour of the donor, even if the name of the donor is indicated or the logo is reproduced (eg. acknowledgement in a publication, art. 3 let. i LTVA).

For any further information, please contact the Principal Division for VAT.