At what point after founding does VAT need to be settled?

First of all, it should be determined whether the obligation to pay VAT even applies. There are tax-exempt activities (e.g. providing services abroad) and VAT-exempt activities (e.g. medical or cultural services).  The obligation to pay VAT only starts once a turnover of CHF 100'000 is achieved in Switzerland, meaning that the company should be registered with the Swiss Federal Tax Administration (ESTV) and a VAT number should be obtained upon founding. However, you can voluntarily become subject for turnover below CHF 100'000.

If an existing company expands its business and foresees that they will exceed the turnover limit, it also becomes tax-liable and should report to the ESTV. Therefore, a projection should be made after three months. If projected turnover exceeds the 100,000 CHF limit, the company must report to the ESTV.

If the limit is not reached until some time has passed since founding the company, the company must report to the ESTV by the 1st of January the following year about the extent to which the limit has been exceeded.