Day Rate or Fixed Fee: What Goes on Your Freelancer Invoice
Day rates vs. fixed fees on Swiss freelancer invoices: billing model requirements, VAT rules, and how to avoid common mistakes.
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- #invoicing
- #switzerland
- #day rate
- #fixed fee
- #billing
Many Swiss freelancers bill by the hour or day, others use fixed project fees — sometimes even both on the same invoice. What seems like a minor detail at first has concrete implications: on mandatory invoice fields, VAT accounting, and whether a corporate client can claim input tax at all.
Day Rate: Transparent Billing by Hours or Days
Time-based invoicing typically shows the number of hours or days worked, plus the agreed hourly or daily rate. The service description must be clear — not just "consulting," but "website conception, 12 h @ CHF 145.00."
What Must Appear on the Invoice
- Number of units (hours, half-days, days) clearly stated
- Rate per unit in CHF
- Service period (e.g., "Services rendered 02.06–27.06.2026")
- VAT amount shown separately, if VAT-liable (standard rate 8.1%)
- VAT number of the service provider
If you've set up your Swiss invoice template correctly with all required fields, you'll find that time-based billing fits naturally — the table with quantity × rate = amount is the standard case.
Special Cases: Travel Time and Waiting Time
Travel time and waiting time are only billable if explicitly agreed in the contract or quote. Without such agreement, it's risky to list them separately on the invoice. When in doubt, show them as a separate line item with a rate of CHF 0.00 and a note "as per agreement" — this keeps the invoice transparent and auditable.
Fixed Fee: Simple, But Full of Pitfalls
A fixed fee appeals to many freelancers: negotiate once, then work undisturbed. The invoice looks cleaner — one line, one amount. But that's exactly where mistakes happen.
Common Problems with Fixed-Fee Invoices
1. The service description is too vague. "Web project CHF 4,800.00" is insufficient. The corporate client needs a description that clearly shows what they're paying for — if only for their own accounting.
2. The service period is missing. Even with a fixed fee, it must be clear which time period or project scope the fee covers. This is especially relevant for VAT accounting: the tax liability arises at the moment of invoicing (accrual method) or when payment is received (cash method).
3. VAT on the full fee is forgotten. If you're VAT-liable, you owe the tax on the entire fixed-fee amount — even if the client hasn't paid it yet. This is particularly problematic when a large fee is on credit. The Swiss VAT basics 2026 guide explains VAT obligations and current rates clearly.
How to Write a Correct Fixed-Fee Invoice
| Field | Example |
|---|---|
| Description | Conception and design of website relaunch, phase 1 per quote no. 2026-08 |
| Service period | March to June 2026 |
| Amount excl. VAT | CHF 4,800.00 |
| VAT 8.1% | CHF 388.80 |
| Invoice total | CHF 5,188.80 |
Mixed Invoice: Fixed Fee Plus Additional Work
In practice, it's common for a project to be based on a fixed fee, but additional work (scope creep, change orders) is billed by time. That's legitimate — but the invoice must separate them clearly.
A recommended structure looks like this:
- Line 1: Project fixed fee per contract — CHF X
- Line 2: Change order work per agreement of [date], N hours @ CHF Y — CHF Z
- Subtotal excl. VAT
- VAT 8.1%
- Total CHF
Important: When creating such an invoice with the SnapBill app, you can freely combine line items with different rates and automatically generate the QR-payment section — this eliminates manual errors with IBANs and reference numbers.
Non-VAT-Liable Freelancers: What Applies?
If you stay below the CHF 100,000 annual turnover threshold and haven't voluntarily registered for VAT, you issue invoices without tax declaration. This applies equally to day rates and fixed fees. The invoice must contain no VAT amount and no VAT number — not even a "VAT 0%" note. Instead: either no VAT mention at all, or if desired, "Exempt from value-added tax per article 10 VAT Act."
Which Model Is "Better"?
That depends on the project — but from an invoicing perspective, there are clear differences:
| Criterion | Day Rate | Fixed Fee |
|---|---|---|
| Transparency for client | High | Moderate |
| Invoice creation effort | Higher | Lower |
| Scope-creep risk | Client's | Yours |
| VAT risk if unpaid | Lower (proportional) | Higher (full amount due) |
| Suitability for repeat work | Good | Very good |
At a Glance
- Day rate: Clearly show units, rate, service period, and VAT. Only bill travel time if contractually agreed.
- Fixed fee: Keep service description detailed, state the period, don't forget VAT on the full amount.
- Mixed invoice: Clearly separate line items; reference the change-order agreement with its date.
- Non-VAT-liable: No VAT details on the invoice — neither rate nor number.
- For uncertainty about invoice structure, consult the Freelance Invoicing in Switzerland practical guide — it explains all mandatory fields with examples.
- For clean invoice creation, freelancers can use the SnapBill online invoice generator, which correctly generates Swiss QR-payment sections per standard.
Frequently asked
Do I still need to track hours internally if I'm billing a fixed fee?
The invoice itself doesn't require an hours breakdown as long as the service description is clear. However, keeping internal time records is recommended — it protects you in disputes and is useful if the client asks questions. For VAT accounting, internal documentation doesn't directly matter, but it's important in case of a tax audit by the Federal Tax Administration.
How do I correctly bill a day rate when I only worked a half day?
You can either show a half-day rate as its own line (e.g., "0.5 days @ CHF 960.00 = CHF 480.00") or switch to hourly billing. What matters is that quantity and rate are clearly traceable on the invoice. Avoid vague wording like "miscellaneous work CHF 480.00" — this creates input-tax problems for corporate clients.
Can I use a fixed fee for one client and a day rate for another?
Yes, that's entirely your business decision. Different projects can use different billing models — the key is that each client agrees on the model beforehand and ideally has it in writing (quote, email, contract). Changing models without client consent after the fact is problematic.
How do I handle expenses with a fixed-fee project invoice?
If expenses aren't included in the fixed fee, list them as a separate line with the amount and a brief note like "Travel expenses per statement of 10.07.2026." If expenses are included, mention that in the service description ("incl. travel expenses within Switzerland"). The SnapBill guides offer detailed guidance on separating fees from expenses on invoices.
What happens if the client only partially pays a fixed-fee invoice?
Under the accrual method (invoiced amount), you owe the Federal Tax Administration VAT on the full invoice amount — regardless of whether the client pays. Only when you become a bad-debt creditor or the amount is definitely uncollectible can you reclaim the VAT through correction procedures. The cash method (received amount) avoids this problem but has conditions attached.
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