Invoicing in Your Own Name (Freelance) under CHF 100,000: OASI Rules and VAT Exemption
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- You can invoice in your own name without setting up a company: a sole proprietorship is enough to get started. Below CHF 100,000 of turnover, you need neither starting capital nor registration in the Commercial Register.
- VAT: as long as your worldwide turnover from taxable services is less than CHF 100,000, VAT registration is not mandatory (Art. 10 of the VAT Act). Invoices are issued without VAT, and the VAT paid on purchases cannot be recovered.
- The OASI decides on self-employed status: it is not a free choice but a recognition granted by the compensation office, which checks that you have several clients (generally at least 3), economic independence and your own infrastructure.
- Without OASI recognition, the risk lies with the client: the relationship can be requalified as an employment contract, and the client must then pay the social contributions retroactively, both the employer's and the employee's share.
- To land your first assignments: an umbrella company (commission often between 5% and 8%) or, where the cantonal office accepts it, a provisional affiliation combined with a withholding of around 10% on invoices pending the office's decision, lets you start without exposing your clients.
1. When must a self-employed person register for VAT (CHF 100,000 threshold)?
In Switzerland, the administrative simplicity for small independent activities is remarkable. It is not necessary to found a Joint-Stock Company (SA/AG) or an LLC (Sàrl/GmbH) to start invoicing. You can operate under the Sole Proprietorship (Einzelfirma) status, simply by using your surname.
The main financial advantage of starting "small" concerns the Value Added Tax (VAT).
The Principle of Article 10 of the VAT Act
The Federal Act on Value Added Tax (VAT Act) sets a clear threshold: As long as your annual global turnover (from taxable services) is less than CHF 100,000, you are exempt from mandatory VAT registration.
Concretely, this means that:
- You do not charge any VAT to your clients (your prices are net).
- You are exempt from heavy quarterly declarations to the Federal Tax Administration (FTA).
- Corollary: You cannot recover VAT on your own professional purchases (IT equipment, travel expenses).
2. How do you get your self-employed status recognized by the OASI (AHV)?
This is where the illusions of many freelancers or cross-border workers shatter. A persistent misconception leads people to believe that if they earn little money, it's enough to declare it on their tax return at the end of the year. This is false and very dangerous for your clients.
In Switzerland, you do not proclaim yourself self-employed!
Self-employed status is not a free choice. It is a status that must be granted to you by your cantonal or professional OASI (AHV) Compensation Office (Old-Age and Survivors' Insurance).
To recognize you as self-employed, the OASI will require concrete proof that you are not a "fake employee". Here are the 3 cardinal criteria verified:
| OASI (AHV) Criteria | What you must prove |
|---|---|
| Plurality of clients | You must prove that you work for several clients (generally at least 3). If 100% of your turnover depends on a single company, the OASI will refuse the status. |
| Economic independence | You act in your own name and bear the economic risk (collection costs, investments). You set your own hours and workplace. |
| Own infrastructure | You have your own premises, your own equipment, your own domain name, and you handle your own advertising. |
The Risk of "Disguised Employment" for Your Clients
If you invoice a Swiss company without being formally recognized as self-employed by the OASI, that company takes a massive risk. In the event of an audit, the OASI will requalify your commercial relationship as an employment contract. Your client will then have to retroactively pay social contributions (both employer AND employee shares) on the amounts they paid you.
This is why, in Switzerland, most serious companies will demand to see your OASI affiliation certificate before paying your first invoice.
3. The Launch Paradox: How to Invoice Your First Clients?
The previous point raises a well-known legal headache for entrepreneurs. For a future freelancer—whether a local resident or a cross-border worker (e.g., from France, Germany, or Italy)—to obtain their OASI certificate, they must prove they already have clients (invoices required). But companies refuse to work with them until they have this famous certificate.
How do you break this chicken-and-egg paradox to land your first 3 mandates legally? Two expert strategies are available:
Solution A: The Umbrella Company / Payrolling (The Secure Route)
This is the most recommended method to start. You sign a contract with a Swiss umbrella company (payrolling). In the eyes of the law, you are an employee of this umbrella company.
- The umbrella company issues the invoices with its own OASI status and VAT number.
- Your clients face zero risk of requalification, which greatly facilitates signing the first contracts.
- The umbrella company deducts social charges, retains a commission (often between 5% and 8%), and pays you a net salary.
Once you have consolidated your portfolio (3 or 4 regular clients), you can then present this evidence to the OASI, leave the umbrella company, and apply for your own self-employed status.
Solution B: Provisional Affiliation and Withholding
If you wish to invoice directly in your own name from day one, you must proceed with absolute transparency toward your first clients:
- Request a provisional affiliation from your cantonal compensation office by presenting a business plan, signed offers, or draft contracts. Some offices (depending on the canton) can issue a temporary agreement in principle.
- Inform your first clients that your status is "pending validation." To fully reassure them, the client can withhold the amount of social contributions (around 10%) from your invoices. If the OASI grants you self-employed status a few months later, the client will pay you this withheld amount. If the OASI refuses, the client will have the funds to pay the social charges and will be protected.
4. How do you repatriate your freelance income?
Once the status is obtained, if you are a cross-border worker acting as a freelancer in Switzerland, or if you invoice international clients from Switzerland, you will receive Swiss Francs (CHF) that you will need to convert into Euros (EUR) for your personal use or taxes.
As a freelancer, every franc counts. The most common mistake is to cash CHF invoices into a traditional bank account, letting the bank apply its "standard" exchange rate to your euro account.
Don't Sacrifice Your Net Margin to Bank Exchange Rates
Traditional banks apply opaque exchange margins (often between 1.5% and 2%) and SWIFT transfer fees. On an annual turnover of CHF 80,000, you could lose CHF 1,200 to 1,600 solely in exchange margin.
As a Swiss financial intermediary designed for professionals and cross-border workers, ibani allows you to:
- Invoice with a CH IBAN: Provide your clients with a true Swiss IBAN in your name.
- Convert at the interbank rate plus a known margin: As soon as your client pays the invoice, ibani converts the funds at the real market rate plus a tiered margin of 0.40% to 0.15% depending on the amount.
- Repatriate without transfer fees: Funds are sent to your Euro account (personal or pro) via the local SEPA network, without SWIFT fees; only the exchange margin shown above applies.
Frequently Asked Questions (Freelancing in Switzerland)
Official sources
- Federal Act on Value Added Tax (VAT Act), art. 10 — Fedlex, accessed 29 September 2026
- Code of Obligations (CO), art. 931 (entry of sole proprietorships in the commercial register) — Fedlex, accessed 29 September 2026
- Memo 2.02: Self-employed contributions to OASI, DI and IC (position as of 1 January 2026) — OASI/DI Information Centre, accessed 29 September 2026