Hi,

I searched the forum but could not find the answer - so if there is an answer out there feel free to point me to the thread (there, now I have guarded myself from the 'hit the search button' response )

So to my question.....

As self employed do I need to pay a pension? (3rd pillar) or is this optional?

3rd pillar is optional. If you can afford it then do it cause it reduces taxes.

I will follow up with one more question if that's ok.....

When you register with AHV you pay taxes based on your income but what about VAT? Is that something you have to pay additionally (even if you earn less than 70 000...read something about MWST). If so, to who? Or is that automatically included when you get the bills from AHV?

for the AHV you declare your salary and based on the declaration the AHV-kasse will send you a monthly bill. There is no VAT involved.

Just to be sure - so this means I do not have to pay it at all? Or will some other "organisation" come and ask for VAT?

AHV will bill you for the basic pension, invalidity, family grant for children etc...

Regarding VAT on your revenue (as company) it has nothing to do with AHV. It's the finance department that deals with it. Depending on the generated revenue you can claim VAT back or not.

Perfect. Thanks!

Thread can be closed

You don't pay VAT on your AHV contributions. But it's rather certain that your services incur VAT - which you ask your customer to pay on top of what they pay you. You declare these amounts (charged by you) and the VAT you have been charges by your suppliers, and pay the difference to the taxman. Simples.

Incidentally, your pension is 2 pillar. 3rd pillar is an extra pension scheme attracting tax rebates to compensate you. On the VAT franchise. I think the 70k turnover is the minimum before you get a VAT number.I think.

yes true. they make exceptions for start-ups if you come-up with a business plan and your projected revenues.

Has the vat threshold now been raised to 100,000CHF, that is what i have read?