Business Expense Compliance in Switzerland

Stay updated on the regulations for digital expense management in Switzerland.

Last updated in January 2024.

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Rules and Regulations in Switzerland

Explore guidelines concerning VAT rates, proof of payment, and mileage allowance in Switzerland.

Proof of Payment

VAT Rates

Mileage Allowance

Paperless Proof of Payment

In compliance with Swiss regulations, companies are allowed to digitally store expense receipts. These records must be electronically preserved in a digital format for a period of 10 years, extending until the conclusion of each calendar year.

This implies that expense receipts dated from 01.02.2014 should not be deleted before 01.01.2025 (and not prior to 01.02.2024).

The Swiss Code of Obligations prescribes the following accounting principles for digital expense storage:

Comprehensive, accurate, and systematic recording of business transactions and facts

Providing documentary evidence for each accounting transaction

Ensuring clarity in the records

Adapting appropriateness in accordance with the type and size of the company

Facilitating verifiability of the recorded information

Digital Proof of Payment with Klippa SpendControl

With Klippa SpendControl, employees can take photos of receipts and invoices or upload e-documents via email, web or mobile app.

Our user-friendly software uses Optical Character Recognition to extract relevant document fields with 99% accuracy and seamlessly populate your system with the extracted data.

Once submitted, authorized employees have the ability to review and approve transaction immediately. Once approved, the processed data can be seamlessly transferred and recorded in your accounting or ERP system by utilizing Klippa’s extensive range of 20+ direct integration options.

Klippa securely stores all archived data for at least 10 years, ensuring that your transaction documents are always available for audits and tax authorities.

VAT Rates

Switzerland sets its own VAT rates. As it is not a member of the European Union, it is not obliged to comply with EU directives, including the standard rate of 15% or others.

Suppliers of goods or services registered for VAT purposes in Switzerland must apply the appropriate VAT rate. They must collect the appropriate tax and then remit it to the Swiss tax authorities as described in the Swiss VAT return instructions.

Starting from January 1, 2024, the recently announced VAT rates by the Swiss Federal Tax Administration have come into effect. The following updated VAT rates will be applicable:

Standard VAT rate: 8.1% (from 7.7%)

Reduced VAT rate: 2.6% (from 2.5%) on certain categories of goods and services

Special rate: from 3.8% (from 3.7%) on accommodation services

Please refer to the Taxes in Europe Database for a complete list of taxable and exempted goods and services.

Automated VAT Rate Extraction with Klippa SpendControl

Klippa SpendControl automatically identifies and retrieves Swiss VAT rates from any document format, seamlessly integrating them into your system.

Furthermore, our solution allows users to enter relevant VAT rates according to their organization’s requirements. Once the data is extracted, it can be seamlessly integrated and posted to their preferred accounting or ERP system.

Mileage Allowance

In accordance with article 327b of the Swiss Code of Obligations, employees have the right to receive mileage allowances when using their personal vehicles for business purposes.

There is no consistent mileage rate that is applicable to all businesses in Switzerland.

Each year, the Touring Club Switzerland (TCS) publishes a comprehensive guide with rates tailored to the various vehicle types.

From 2024, the average cost per kilometre will be CHF 0.72. If an employee’s vehicle exceeds this average value, a possible adjustment can be negotiated with the employer.

While there is no fixed maximum amount for tax purposes, reimbursements should be based on actual expenses and deemed reasonable. Employers who are unsure about mileage reimbursement can check with their local tax authority.

Employees can include these travel expenses in their tax returns for reimbursement. The maximum allowable amount of travel expenses in the tax return varies based on the specific canton regulations.

Automated Mileage Tracking with Klippa SpendControl

Klippa SpendControl‘s integration with Google Maps makes it easy to record and reimburse mileage expenses. Employees can easily specify the start and end point of the journey and our system calculates the distance based on the fastest route using a predetermined rate.

Once an expense claim has been submitted, SpendControl can implement custom reimbursement policies, such as mileage allowances, for individual users, administrations or categories before forwarding the data for approval by authorized employees.

Klippa securely retains all data for at least a decade, guaranteeing that companies can readily access mileage records for precise and efficient employee reimbursements whenever needed.