Fees and Expenses on One Invoice: What Swiss Freelancers Must Know

Many Swiss freelancers bill fees and expenses together on a single invoice—and make mistakes that lead to disputes with clients or tax advisors later. The separation sounds straightforward, but it's often more complex: different VAT rates, expenses without tax, receipts the client wants to see—all of this must appear clearly and verifiably on your invoice.

Why the separation matters

If you write "CHF 3,400.– including expenses" as a freelancer, you create a problem for your client: they cannot correctly claim input tax deduction because it's unclear which portion is subject to which VAT rate. You, in turn, run the risk of remitting VAT on amounts that aren't taxable at all.

The cornerstone principle of the Swiss Value Added Tax Act (VATA) is this: expenses you incur on behalf of and in the name of your client are so-called pass-through items—they are not subject to VAT. Expenses you incur on your own account and pass on to the client, however, form part of your fee and are VAT-liable.

This distinction is crucial and often misunderstood in practice.

Pass-through items vs. reimbursed expenses

Pass-through items (no VAT)

A pass-through item occurs when you act as an intermediary: the client is the actual debtor for the expense, and you merely process the payment. Common examples:

• A train ticket purchased in the client's name and forwarded with the original receipt
• Parking fees incurred solely during a client assignment
• Notary fees you prepaid on behalf of the client

On the invoice, pass-through items appear as a separate line without VAT—marked "Reimbursement without tax" or "Pass-through item per VATA Art. 24 para. 6 lit. b".

Reimbursed own expenses (with VAT)

If you purchase the service yourself and pass part of your costs to the client, these expenses count as part of your fee. They are subject to the same VAT rate as your main service—typically 8.1% for professional services. Common examples:

• A hotel stay you booked and paid for yourself
• Mileage allowance for a private vehicle
• Meal per diem per your own terms and conditions

These items must show VAT.

How to structure your invoice

A clearly organized invoice protects you from follow-up questions. Here's a suggested layout:

Item	Description	Amount CHF	VAT
1	Website concept and implementation (12 h × CHF 150.–)	1,800.00	8.1%
2	Meal per diem, 2 travel days	80.00	8.1%
3	Train ticket Zurich–Bern–Zurich (pass-through)	62.00	0%
	Subtotal excl. VAT	1,880.00
	VAT 8.1% on CHF 1,880.00	152.28
	Total CHF	2,094.28

Item 3: Reimbursement per VATA Art. 24 para. 6 lit. b; original receipt enclosed.

This structure shows your client at a glance what qualifies for input tax deduction and what doesn't. For a comprehensive overview of invoicing principles, see the Freelance invoicing in Switzerland — practical guide.

Receipts: what you must provide

Whether you must enclose receipts depends on your agreement with the client—it's not legally required. In practice:

• Pass-through items: original receipt is advisable because you'll struggle to prove the pass-through nature otherwise.
• Own expenses with allowance (e.g., mileage): no receipt needed, but clear description (date, route, kilometers).
• Own expenses actual: receipt or copy recommended, especially for larger amounts.

Important for your own accounting: all expenses you pass on must also be recorded as expenses in your books—otherwise an unexplained profit arises.

Expenses under the flat-rate VAT method

If you use the flat-rate VAT method—which many freelancers do because it simplifies invoicing—know this: pass-through items are also excluded from the calculation base. You don't apply a flat rate to genuine pass-through items. This sounds advantageous but requires clean separation on the invoice.

A common mistake: freelancers using flat-rate VAT show "8.1% VAT" on the invoice even though they internally apply the flat rate (e.g., 5.9%). This is permissible—the client can deduct 8.1% as input tax—but you must settle the difference correctly internally. Your tax advisor should discuss this with you once.

Common mistakes at a glance

• Lumping fees and expenses together: no separate VAT, client cannot correctly claim input tax.
• Declaring own expenses as pass-through items: VAT liability avoided, risking audit demands from the Federal Tax Administration.
• Mileage without details: date, route, and kilometers missing—hard to substantiate if questioned.
• Missing VAT number: if VAT-registered, your number must appear on every invoice. For full details on Swiss VAT, see Swiss VAT basics 2026 — rates, duties and special rules.
• Including pass-through items in VAT settlement: you remit more VAT than owed—money wasted unnecessarily.

Put it into practice

When creating a new invoice, use a template with fixed line items: fees, own expenses (taxable), pass-through items (tax-free). The SnapBill app lets you show multiple line items with different VAT rates—including 0% for pass-through—on a single QR-bill without manual addition.

Summary

• Pass-through items (in the client's name and on their account) are not subject to VAT and are shown separately.
• Own expenses you pass on are part of your fee and subject to your standard rate.
• Separate items clearly on your invoice—a table with a "VAT rate" column prevents most errors.
• Document pass-through items with original receipts; describe expense allowances with date and detail.
• If using the flat-rate method, still show pass-through items separately and exclude them from the calculation base.
• Have your tax advisor review the structure once—a second opinion saves corrections later.

With a consistently separated invoice, you avoid follow-up questions, prevent VAT audit demands, and appear professional to your clients. It's worth the upfront effort. Learn more about all invoicing aspects on the SnapBill homepage.