VAT and deduction of input tax

Value added tax and input tax are not always easy to calculate. Here is a guide using a concrete example.

The added value chain from import of fabric to the manufacture of clothing to the store (all values in CHF):

The importer sells fabric to the clothing factory (example: if the value of the imported goods is CHF 5,000, a VAT of CHF 405 is invoiced).

Market value


+ 8.1% VAT


Invoice amount


Importer’s VAT declaration

Total VAT


less input tax

  - 405

The importer pays VAT

The clothing factory makes the clothes and delivers them to the store Market value 30,000
+ 8.1% VAT 2,430
Invoice amount 32,430
VAT declaration of the clothing factory Total VAT 2,430
less input tax   - 810
The clothing factory must pay VAT in the amount of   1,620
The store sells clothes to the customers Market value 70'000
+ 8.1% VAT 5'670
Invoice amount 75'670
Store’s VAT declaration Total VAT 5'670
less input tax   - 2'430
The store must pay VAT in the amount of   3'240



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Last modification 20.12.2023

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