Express courier. Direct.
Also overnight.
x25pronto Switzerland takes goods direct to the destination. Small loads go by car. Larger loads go by van or Van XL. Direct, express and overnight trips run Monday to Sunday when a slot is free. Free times are shown in the booking calendar. This keeps the plan clear.
Tax treatment of prepayments and remaining credits in CH accounting
How to record prepayments and remaining credits in Swiss accounting. Practical booking rules, typical accounts and MWST considerations for companies in Switzerland.
Quick answer
Prepayments and remaining credits are usually recorded as assets or liabilities until the related service or cost is recognized. Customer prepayments become liabilities (deferred income) and affect taxable profit only when the service is delivered. Prepaid expenses you made are booked as accrued assets and expensed when used. Remaining credits from suppliers or customers are shown as short-term receivables or payables. MWST rules require attention: prepayments for taxable services generally trigger VAT at receipt. Below you find common accounts, examples and practical checks for Swiss firms.
What are prepayments and remaining credits?
Prepayments are cash receipts or payments made before the related goods or services are delivered. Examples: annual subscriptions, deposits for services, rent paid in advance. Remaining credits occur when a customer overpays or a supplier issues a credit. Both items are typically short-term and must be classified as receivables, payables or accruals.
Basic accounting and tax principles
Income tax: record revenue when the service is performed. Therefore, received prepayments are booked as liabilities (deferred income) until the service is provided. Prepaid expenses are recognized as assets and expensed when consumed. This approach prevents shifting taxable profit across periods.
Common accounts and booking examples
Example 1 – Customer pays CHF 5,000 in advance for a service: On receipt: Bank / 1180 Received advances (deferred income). After service: 1180 Received advances / 3300 Service revenue. Example 2 – You prepay CHF 2,400 for annual software: On payment: 1510 Prepaid expenses / Bank. Monthly expense: 5400 Software expense / 1510 Prepaid expenses (CHF 200/month). Example 3 – Supplier issues a credit CHF 150: Bank / 2000 Accounts payable (or 2300 Other short-term liabilities) until clarified.
VAT considerations in Switzerland
For VAT, the key is whether the prepayment is a consideration for a taxable supply. Received advances for taxable services generally trigger VAT at time of receipt. You must record VAT on the advance and report it in the VAT return. Also check input VAT treatment for prepaid purchases and keep clear invoice documentation.
Year‑end and period closing
At year-end, classify prepayments and remaining credits correctly. Prepaid expenses for the next period belong to assets. Received advances for next-period services belong to liabilities. Reconcile credits with debtors and creditors before closing, or present them as short-term items on the balance sheet.
Practical tips and controls
1) Use separate accounts for advances and remaining credits. 2) Document the contract period and performance dates. 3) Review accruals monthly for recurring services. 4) Consult your fiduciary for complex tax questions; this article is not legal advice. 5) Standardize booking templates so VAT and taxable income are reported consistently.
Frequently asked questions
How do I book a prepayment for a service that will be delivered next year?
Record the payment as received advances (deferred income). Move the amount to revenue when you deliver the service. VAT must be considered at receipt if the service is taxable.
Do I have to refund a supplier credit immediately?
Not necessarily. Treat it as a short-term receivable or payable and agree with the supplier. You can also offset it against future invoices if both parties agree.
When can I deduct prepaid expenses for tax purposes?
You deduct the expense in the period when the service is used. Until then, classify the payment as a prepaid expense (asset).
Does VAT treatment change for recurring prepayments?
No. VAT depends on when the taxable supply is considered to occur. For recurring payments, record VAT in the period matching the tax rules and your invoicing practice.