Maintenance contracts, software subscriptions, equipment rental and membership fees repeat the same invoice. Recurring invoices automate this: define the service once, generate an invoice each period. This guide covers prerequisites, required details, lead times, due dates, plan changes and errors that would otherwise recur each period.
When recurring invoices help
Recurring invoices are useful when the service, price and billing frequency stay the same. Typical examples are an annual maintenance contract, a monthly hosting fee and quarterly equipment rental. The main benefit is reliability: no invoice is forgotten or written twice, and each one carries the same details. Where services vary with time spent or consumption, use the recurring schedule to prepare a draft and adjust that draft for each billing period.
Clarify the contract first
Contracts may be freely defined within legal limits (Art. 19, para. 1 of the Code of Obligations (OR; CO)). A recurring schedule implements your agreement. Record in writing:
- service and price per period, including/excluding VAT;
- start, term and frequency (monthly, annually…);
- advance/arrears billing and payment term;
- expiry, renewal and termination;
- whether/how prices may change during the term.
This guide does not assess permissible renewal, termination or price-adjustment clauses. Have legal advisers check them before including them in quotations/contracts. A clear quotation is the best starting point.
Key settings
Every schedule needs:
| Setting | Question | Example |
|---|---|---|
| Interval | How often? | Weekly, monthly, quarterly, half-yearly, annually |
| Start/end | First period starts when; schedule ends when? | Start 01.04.2026; open or fixed end |
| Billing | Start or end of period? | Maintenance in advance; time-based work afterwards |
| Lead time | Days before period? | 30 days before renewal |
| Due date | Payment term or period start? | Due 01.04.2026 |
| Period count | End after fixed number? | 12 months, then end |
| Sending | Automatic or draft review? | First periods as drafts |
Start on the first of a month where possible. Mid-month starts shorten the first period but charge full price. Only an end before period-end prorates the final period by days.
Invoice details: VAT and service period
On request, suppliers must issue invoices meeting Art. 26, paras. 2–3 of the VAT Act (MWSTG), under para. 1. They must clearly identify supplier, recipient and service, normally including (para. 2):
- supplier name/location, VAT-register status and number;
- recipient name/location;
- service date/period where different from invoice date;
- nature, subject and scope;
- consideration;
- applicable rate and VAT due.
The bold point matters for recurring invoices. Advance billing precedes service: include, for example, “Maintenance 01.04.2026 – 31.03.2027”.
Invoice timing also matters for VAT. Under invoice-based accounting, output tax arises on invoicing (Art. 40, para. 1(a)); successive partial invoices/payments trigger it on issuing the partial invoice or receiving payment (para. 1(b)); advance payments for services not exempt from tax, and services without invoicing, trigger it on receipt (para. 1(c)). Under cash-based accounting it arises on receipt (para. 2). A 30-day lead time crossing a quarter boundary can change the return period. Consult your fiduciary; see Invoice-based or cash-based VAT.
A wrong rate repeats on every invoice. Subsequent correction, within commercial-law limits, may use a document requiring receipt that references and revokes the original (Art. 27, para. 4). Check the first invoice carefully. See Create a QR-bill for payment sections.
Send automatically or review first
Schedules can issue/send invoices or prepare drafts for review and issue. Use drafts while new, prices/quantities change or addresses are uncertain. Switch to automatic after two correct periods. Still sample quarterly for address, email and price against contract.
Price changes, pauses and plan changes
Price changes: the contract governs whether/when permitted (Art. 19 CO). Change the schedule only after agreement; communicate the new amount in writing.
Pauses: pause when services stop temporarily. Decide beforehand whether paused time is later billed or waived.
Plan changes: mid-term changes require adjustment. Credit the old plan’s remaining days and charge the new plan for those same days. The difference is an extra charge or, for downgrades, credit. Calculate daily so customers can follow it; see below.
Payment, reminders and limitation
Each period creates a separate claim/due date. Apply normal payment reminders and monitor accounts receivable. Limitation runs from due date (Art. 130, para. 1 CO). Rent, lease payments, interest and other periodic payments expire after five years (Art. 128, point 1). Classification depends on the case; cautiously allow five years if unsure.
Practical example: Muster Heizungsservice AG
Fictional Muster Heizungsservice AG agrees “Basis” maintenance with a property manager: CHF 1’200.00 net yearly plus 8.1 per cent VAT. Annual advance billing starts 1 April 2026, invoiced 30 days beforehand, due at period start. Initial periods produce drafts.
| Detail | Value |
|---|---|
| Period | 01.04.2026 – 31.03.2027 (365 days) |
| Invoice date (30 days before) | Monday, 02.03.2026 |
| Due | 01.04.2026 |
| Net | CHF 1’200.00 |
| VAT 8.1% | CHF 97.20 |
| Invoice amount | CHF 1’297.20 |
The invoice states service period 01.04.2026 – 31.03.2027. Dated March, service starts April. A return-period boundary may intervene, so the fiduciary clarifies VAT allocation (Art. 40 MWSTG).
On 1 October 2026, the manager switches to “Plus”, CHF 1’800.00 net yearly. There are 182 remaining days to 31 March 2027 (October 31, November 30, December 31, January 31, February 28, March 31), out of 365.
| Line | Amount (CHF) |
|---|---|
| Basis credit, 182/365 of 1’200.00 | −598.36 |
| New Plus, 182/365 of 1’800.00 | +897.53 |
| Net difference (subtotal) | 299.17 |
| VAT 8.1% | 24.23 |
| Gross extra charge | 323.40 |
897.53 − 598.36 = 299.17 net; VAT is 24.23 (299.17 × 8.1%, rounded). If Art. 128, point 1 CO applies, the annual claim due 1 April 2026 becomes time-barred at end-Tuesday, 1 April 2031, unless interrupted.
Checklist
- Contract covers service, price, term, renewal and termination
- Start preferably first of month
- Interval, lead time and due date match agreement
- Service period stated (Art. 26, para. 2 MWSTG)
- Rate and VAT number checked; first invoice reviewed before sending
- Initial drafts, then automatic
- Customer address/email current
- Price changes only by agreement
- Open items/reminders handled like individual invoices
- Limitation monitored (Art. 128, point 1; Art. 130, para. 1 CO)
How KMU | base helps
KMU | base is also available in French, Italian and English.
Finance | base bills recurring services through schedules.
1. Create. Open More › Recurring in the Finance sidebar, page Recurring invoices. New recurring invoice covers weekly–annual billing, advance/arrears, start/end dates, exactly one document per period. Choose customer, invoice/order, interval, dates, currency and template. Enter product/free lines with per-period price, discount and VAT. The title appears on each document.
2. Periods. Monthly periods end at month-end. Quarterly, half-yearly and annual periods span 3, 6 or 12 months from the start month’s first day; weekly periods seven days from start. Early endings prorate the final period; mid-month starts charge fully. Prefer month-start. Line text and PDF Service period state the period.
3. Automatic/review. Daily processing issues/sends or creates review drafts. New schedules preselect Issue and send automatically. Untick for drafts you review and issue yourself.
4. Before renewal. Invoice in advance (days) sets lead time, e.g. 30 days. Due dates are on the first day of the period or after payment term. Number of periods sets a fixed duration.
5. Pause/invoice now. Details allow pause/resume without back-billing paused time. Invoice due periods now bills immediately instead of waiting for the daily run; if nothing is due, Finance says so. Each period bills at most once; generated documents appear below.
6. Plan changes. Mid-term upgrades/downgrades credit old remaining days, prorate the new plan and continue as a linked successor schedule. End date, lead time, due-date rule and remaining cycles persist. Currently this uses the Finance interface through which other programs create, start, stop and change schedules; there is no button in the schedule view.
7. Payments/reminders. Generated invoices follow normal sales processing: allocate bank-file receipts; overdue invoices enter reminders.
See the Finance | base guide. Try the Demo or open a test account. Questions? See the Contact page.
Sources
- Code of Obligations (OR, SR 220), Art. 19, para. 1; Art. 128, point 1; Art. 130, para. 1, as at 1 October 2026: Fedlex (German original), accessed 26.10.2026.
- VAT Act (MWSTG, SR 641.20), Art. 26, paras. 1–2; Art. 27, para. 4; Art. 40, para. 1(a–c) and para. 2, as at 1 January 2025: Fedlex (German original), accessed 26.10.2026.
This guide does not replace legal or tax advice. Information as at 26 October 2026.