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What Swiss freelancers must do each year (solo)

For a sole proprietor without employees, administration follows a simple rhythm. Most of the year consists of routine activity. A small number of obligations occur at fixed moments or when specific thresholds are reached.

Start

Register as self-employed with your AHV/AVS compensation office. This establishes your status and determines how contributions are billed.

During the year

The day-to-day is operational rather than administrative:

  • issue invoices
  • pay expenses
  • retain supporting documents

In practice, the bank account serves as the main reference for cash movements.

This view must be completed with two elements:

  • unpaid invoices, meaning amounts owed to you
  • unpaid bills, meaning amounts you owe

Together, these are sufficient to reconstruct income, expenses, and financial position in simple cases.

AHV/AVS contributions are paid provisionally during the year. If income changes materially, the compensation office should be informed to avoid large adjustments later.

If registered for VAT:

  • apply VAT to invoices where required
  • submit returns according to the assigned schedule
  • settle the tax within the deadline

After 31 December

At year end, activity is consolidated into a coherent picture:

  • total income and expenses
  • outstanding receivables and payables
  • assets and liabilities

From this, business profit is determined.

Accounting requirements depend on scale:

  • below CHF 500,000 turnover: simplified records are sufficient
  • at or above CHF 500,000: full accounts are required

Tax season

Business profit is declared within the personal income tax return.

Business assets and liabilities may also need to be declared, depending on the canton.

The tax assessment serves as the basis for final AHV/AVS contributions:

  • if provisional payments were too low, a balance is due
  • if they were too high, the excess is refunded

Thresholds

Certain obligations arise only once specific levels of activity are reached.

Turnover above CHF 100,000:

  • registration in the commercial register becomes mandatory
  • VAT registration is required if the turnover is taxable in Switzerland

These thresholds are based on turnover, not profit, and VAT considers worldwide turnover.

Minimal constraints

  • No mandatory pension fund or accident insurance applies to a solo operator.
  • Handling personal data falls under the Federal Act on Data Protection.

Frequent errors

  • confusing turnover with profit when assessing thresholds
  • delaying VAT registration
  • failing to adjust AHV/AVS income during the year
  • mixing private and business finances

In essence, the system is linear.

Transactions accumulate during the year, are consolidated at year end, and are then reported once through taxation and social contributions. Complexity arises mainly from thresholds and timing, not from the underlying structure.