Invoicing in Your Own Name (Freelance) under CHF 100,000: OASI Rules and VAT Exemption
Reading time: 9 minutes | Updated: April 8, 2026
Reading time: 9 minutes | Updated: April 8, 2026
Launching a freelance business in Switzerland (Sole Proprietorship) generating less than CHF 100,000 per year offers a light administrative framework, but comes with formidable legal pitfalls. Tax-wise, according to Art. 10 of the VAT Act, you are exempt from mandatory VAT registration (you invoice net amounts). Socially, this is the critical step: you must obtain formal recognition of your self-employed status from the OASI (AHV) Compensation Office. To bypass the "launch paradox" (finding your first 3 clients without having the certificate), temporary use of an umbrella company (payrolling) often proves essential. Without this strict validation, your clients face the risk of your contracts being requalified as disguised employment and will have to pay your social charges retroactively.
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 Federal Act on Value Added Tax (VAT Act) sets a clear threshold: As long as your annual global turnover (from taxable services) does not exceed CHF 100,000, you are exempt from mandatory VAT registration.
Concretely, this means that:
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.
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. |
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.
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:
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.
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.
If you wish to invoice directly in your own name from day one, you must proceed with absolute transparency toward your first clients:
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.
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 more than CHF 1,500 solely in conversion fees.
As a Swiss financial intermediary designed for professionals and cross-border workers, ibani allows you to: