Why federal contracts require dedicated accounting processes
Winning a contract with the Swiss Federal Administration opens a stable, creditworthy revenue channel for an SME. But administrative management is stricter than in the private market: mandatory electronic invoicing above a value threshold, binding order references, contractual payment schedules, and automatic penalties in case of delay or non-performance.
Since 1 January 2016, suppliers invoicing the Confederation for contracts whose value exceeds CHF 5'000 (excluding VAT) must issue electronic invoices. Accepted formats are a PDF sent by e-mail to the address specified by the contracting unit, or structured data via a certified service provider. From mid-2023, PDF invoices submitted through a service provider portal are no longer accepted: the PDF remains valid only when sent directly by e-mail.
This guide outlines the operational and accounting requirements for Confederation suppliers, with references updated to 2026 and practical guidance for those using accounting software such as Accountex.
Who the B2G obligation applies to and what is excluded
The electronic invoicing obligation applies exclusively to relationships with the Federal Administration (Bundesverwaltung). Cantons, municipalities, and parastatal entities may adopt their own rules: always verify the conditions of each contracting authority on simap.ch or in the tender documents.
| Element | Confederation (Bund) | Cantons / Municipalities |
|---|---|---|
| E-invoice threshold | Mandatory if contract value > CHF 5'000 (excl. VAT) | Variable — PDF or QR invoice often accepted |
| Procurement legal basis | Federal Act on Public Procurement (LAPub; formerly BöB) | Cantonal laws and municipal regulations |
| General conditions | Confederation General Conditions (goods, services, ICT) | Contracting entity's own General Conditions |
| Payment term | As a rule, 30 days from receipt of a correct invoice | 30–60 days, according to contract |
| Tender portal | simap.ch | Integrated or standalone cantonal portals |
| Invoice retention | 10 years, with integrity and authenticity guaranteed | 10 years (Art. 958f CO) |
Three channels for issuing electronic invoices to the Confederation
The Federal Finance Administration (EFV) provides scalable solutions depending on your invoicing volume and the degree of automation in your ERP:
ERP integration
Your accounting system generates structured data (UBL, eCH-011, swissDIGIN) and transmits it to a certified service provider (PostFinance, Swisscom Conextrade, or a provider with an interconnection interface). The ideal solution for SMEs with multiple active federal contracts.
PDF via e-mail
For lower volumes: create a PDF with all mandatory data and send it to the e-mail address of the contracting administrative unit. One PDF file per invoice; e-mails up to 25 MB with multiple PDFs in the same transmission. Always include the order reference in the document.
Provider web module
Enter the data manually in the service provider portal, which issues the invoice with a digital signature and delivers it to the Administration. Useful for a few documents per year, without ERP integration.
Regardless of the channel, every invoice must contain: identification of the federal contracting authority, contract or order number and date, payment reference, description of services, net amounts, VAT shown separately, and total. An error in the order reference is the most frequent cause of rejection and payment delay.
Accounting treatment of B2G invoices
Federal contracts require traceability that goes beyond simply issuing the invoice. In accounting, every document must be linked to the contract and the progress of work:
Trade receivables vs. revenue. When issuing a partial or final invoice: debit Trade receivables — public sector clients, credit Revenue from services (or a work-in-progress clearing account) and VAT payable. Do not record revenue before delivery or acceptance if the contract makes it conditional on formal receipt.
Cost centre per contract. Assign each line item to the contract number or the client's SAP project. This facilitates margin monitoring, reporting of work reports (mandatory for cost-reimbursable contracts), and bank reconciliation via QRR or SCOR reference.
Supporting documents. Archive acceptance reports, certified daily reports, change orders, and correspondence on the payment schedule. Digital retention for ten years is a legal obligation (Art. 958f CO) and a prerequisite for any VAT audits.
Payment reconciliation. Federal payments arrive with a structured reference. Configure Accountex to automatically match camt.053 receipts to open receivables, avoiding outstanding balances and unwarranted payment reminders.
Advance payments and payment schedules
Under federal contracts, invoicing follows the agreed payment schedule (Zahlungsplan). If no explicit schedule is provided, the General Conditions provide for invoicing upon completion of services, unless otherwise agreed in writing.
Advance invoices
Advance payments are permitted if provided for in the contract or payment schedule. For ICT services, the contracting authority may require bank guarantees in exchange for advance payments (deposits or advances). Review the clause before starting work: a bank guarantee involves costs and liquidity constraints.
In accounting, an advance that has been invoiced but not yet "earned" must be recorded as a liability (Customer advances or Deferred revenue), not as final revenue. On the final invoice, offset the advance and recognise the remaining revenue.
VAT on advance payments
In Switzerland, advances for taxable services create a VAT obligation either when the advance invoice is issued under the agreed consideration method, or upon receipt of payment under the collected consideration method. Issue advance invoices with VAT shown separately and record them in the VAT register for the correct period.
For multi-year contracts, plan cash flow accordingly: the Administration generally pays within 30 days, but a rejected invoice due to missing data resets the payment term until the correction is made.
Contractual penalties: what the federal General Conditions provide
The Confederation's General Conditions provide for contractual penalties (Pönalen / contract penalties) distinct from compensation for damages. Amounts vary depending on the applicable set of General Conditions (goods, services, ICT). Payment of a penalty does not release the supplier from remaining contractual obligations.
| Breach | Indicative penalty (GC) | Accounting treatment |
|---|---|---|
| Delay in performance | 1/1000 of total remuneration for each day of delay, max. 10% of the fee (GC for ICT services, Art. 15.3; GC for goods/services, Art. 10) | Extraordinary expense; deductible if contractually due |
| Breach of confidentiality | 10% of total remuneration, max. CHF 50'000 per event (GC for goods, Art. 13.4; GC for ICT, Art. 13.4) | Penalty expense account; verify professional liability insurance |
| Breach of labour, equal pay, or environmental obligations | 10% of maximum fee, min. CHF 3'000, max. CHF 100'000 per contract (GC for goods, Art. 4.7) | Immediate charge; document any dispute |
| Reduction for defects | Proportional reduction of the fee (not a penalty, but similar accounting effect) | Partial revenue reversal or credit note |
Penalties are deducted from any damages subsequently claimed by the contracting authority. In case of dispute, retain evidence of absence of fault (force majeure, delay attributable to the contracting authority, unapproved change orders). An unjustified penalty must be contested in writing within the contractual deadlines, not simply recorded as accepted.
Operational checklist for federal suppliers
Before submitting a bid on simap.ch, verify which set of General Conditions applies (goods, generic services, ICT services) and model your price including penalty risk and bank guarantee costs.
Upon award, record in the customer master data the eDirectory participant number, the PDF e-mail address, and the mandatory contract reference.
Configure the payment schedule in your ERP: advance payments, progress milestones, mandatory attachments (certified reports, acceptance reports).
Issue electronic invoices for contracts whose value exceeds CHF 5'000 (PDF via e-mail or structured data); send a test submission to the contracting unit before the first final invoice.
Monitor contractual deadlines and automatic default: penalty deadlines trigger default without further notice.
Archive invoices, digital signatures, and XML metadata for ten years, with verifiable backups for integrity and authenticity.
How Accountex simplifies public procurement management
A contract with the Confederation should not force your SME into parallel manual processes. With Accountex you can link each job to the federal contract number, issue electronic invoices compliant with federal requirements, track advance payments and offsetting entries at closing, and reconcile receipts via camt import.
The receivables dashboard flags rejected or overdue invoices, while the central document archive consolidates contracts, acceptance reports, and correspondence on penalties. For suppliers growing in the public procurement segment, automation reduces errors on order references — the main cause of delays in federal payments — and keeps accounting aligned with VAT filing deadlines.