For the purpose of this Ordinance, volatile organic compounds (VOCs) are organic compounds with a vapour pressure of at least 0.1 mbar at 20 °C or a boiling point of maximum 240 °C at 1013.25 mbar.

The following are liable for tax:

a.

VOCs on the positive list of substances (Annex 1);

b.

VOCs in accordance with letter a that are contained in imported mixtures and products mentioned in the positive list of products (Annex 2).

Customs legislation applies by analogy to the levying and refund of the tax, and to the procedure where imports and exports are concerned.

¹ The Directorate General of Customs shall implement this Ordinance unless the Federal Office for the Environment (FOEN) is responsible. In doing so, it shall take account of the views of the FOEN.

² The FOEN:

a.

implements the provisions on the distribution of the tax revenue (Art. 23-23b);

b.³

…

c.

evaluates the effect on air quality of the tax and the exemption from tax in cases of measures taken to reduce emissions and publishes the results regularly.

³ The Federal Office for Customs and Border Security (FOCBS) shall provide the FOEN with the required documents.⁴

⁴ The cantons shall support the federal implementing authorities, unless the Confederation is liable to the tax. In particular, they shall review:

a.

Repealed

b.

the verification of the proof in accordance with Article 9h;

c.

the verification of the VOC balance sheets in accordance with Article 10;

d.

Repealed

e.

the confirmation of the reduction of diffuse emissions in accordance with Article 9k.⁵

⁵ The costs incurred by the federal implementing authorities shall be compensated for annually at 4.9 per cent of the revenue (gross revenue less refunds). The amount of the compensation for implementation shall be verified and modified if required.⁶

⁶ In consultation with the Federal Department of Finance, the Federal Department of Environment, Transport, Energy and Communications (DETEC) shall issue regulations on compensatory payments to the cantons for their support in implementing this Ordinance.

¹ The Federal Council shall establish a commission of experts, on which the Confederation, the cantons and other interested parties are represented, and shall appoint a representative of the FOEN⁸ as president. The commission of experts shall consist of a maximum of twelve members.

² The commission of experts shall advise the Confederation and the cantons on matters relating to the incentive tax on VOCs, in particular on the amendment of the Annexes and on the implementation of the exemption from tax in cases of measures taken to reduce emissions.⁹

¹ The implementing authorities may, without prior notice, carry out audits, in particular of persons who are required to pay the tax, and of persons required to prepare a VOC balance sheet or who submit a request for a refund¹⁰.

² All information and documents necessary for the implementation of this Ordinance must be submitted to the implementing authorities on request.

The tax rate amounts to 3 Swiss francs per kilogram of VOCs.

¹ VOCs in the following mixtures and products are exempt from tax:

a.

mixtures and products in which the VOC content does not exceed 3 per cent (% by weight);

b.¹²

mixtures and products that are not on the positive list of products.

² …¹³

³ If mixtures and products in accordance with paragraph 1 letters a and b are manufactured in Switzerland, the VOCs contained therein are exempted from tax at the request¹⁴ of the manufacturer.

VOCs that are used in stationary installations in terms of Article 2 paragraph 1 and Annex 1 Number 32 of the Ordinance on Air Pollution Control of 16 December 1985¹⁶ (OAPC) are exempt from the tax if:

a.

the measures taken have resulted in the annual quantity of VOC emissions from these installations being reduced by at least 50 per cent of the VOC emissions quantity allowed for the same rate of production while complying with the preventive emission limits set by Articles 3 and 4 of the OAPC;

b.

the air purification plant (APP) used therefor is in a good technical condition and is operational for 95 per cent of the operating time; and

c.

the VOC emissions of the stationary installation that are not processed by the APP (diffuse VOC emissions) are reduced in accordance with Annex 3.

¹ Two or more stationary installations may on application be combined as an installation group if:

a.

they are operated by the same person; and

b.

each installation meets the requirements of the OAPC.¹⁸

² An installation group is treated in the same way as a single stationary installation with regard to meeting the exemption requirements set out in Article 9.

³ The composition of an installation group may not be changed in the following cases. Exempted therefrom are:

a.

the exclusion of decommissioned stationary installations;

b.

Repealed

c.

the subsequent inclusion of stationary installations that already meet the requirements set out in Annex 3;

d.

the sale of stationary installations;

e.

the amendment of Annex 3; only from the date on which the amendment comes into force.¹⁹

⁴ …²⁰

¹ If the operational targets for the APP required under Article 9 paragraph 1 letter b are not achieved over a financial year due to an exceptional event, the VOCs emitted outside the downtime of the APP are exempt from the tax provided:

a.

the exemption requirements set out in Article 9 are met outside the downtime;

b.

the cantonal authority was informed immediately of the exceptional event; and

c.

the exceptional event was not caused by the inadequate maintenance or incorrect operation of the APP.

² If the operational targets for the APP required under Article 9 paragraph 1 letter b are not achieved over a financial year due to the replacement of the APP, the VOCs emitted outside the downtime of the APP are exempt from the tax provided:

a.

the exemption requirements set out in Article 9 are met outside the period during which the APP was being replaced;

b.

the cantonal authority is informed in advance of the planned downtime of the APP; and

c.

the replacement work is carried out during the company holidays or at times of low production.

¹ DETEC shall modify Annex 3 in line with technical developments after consulting the industries and cantons concerned.

² The VOC emissions from stationary installations that are no longer reduced in accordance with the requirements of Annex 3 because of modifications pursuant to paragraph 1 remain exempt from the tax provided the installation meets the requirements of Annex 3 once again within three years of the date on which the modification comes into force.

¹ Modifications of the stationary installation that affect the diffuse VOC emissions must be reported to the cantonal authority immediately.

² …²⁶

¹ Any person who claims a tax exemption under Article 35a paragraph 4 EPA must prove each year that the exemption requirements set out in Article 9 have been met.²⁹

² The proof must be submitted at the same time as the VOC balance sheet.

³ If the proof cannot be provided, the tax exemption ceases to apply to the VOCs used in the stationary installation during the relevant financial year.

Stationary installations become exempt from the tax from the date that they meet the requirements for an exemption under Article 9.

¹ In the case of stationary installations, the cantons shall confirm compliance with the requirements of Annex 3 if so requested by the operator.

² They shall review the confirmations at least every five years and shall conduct inspections in order to do so.

¹ Any person who claims an exemption from the tax in accordance with Article 35a paragraph 3 letter c or paragraph 4 of the EPA or an authorisation to obtain VOCs provisionally exempted from the tax (Art. 21) shall keep VOC accounts and prepare a VOC balance sheet.³³

² A VOC balance sheet shall contain:

a.

entries, stocks, outgoings;

b.

quantities contained in mixtures and products;

c.

quantities recovered;

d.

quantities eliminated in the enterprise or through an external enterprise, or quantities transformed;

e.

remaining emissions.

³ The implementing authorities may request further information.³⁴

⁴ The VOC balance sheet must be prepared on an official form. The Directorate General of Customs may accept other manners of presentation.

⁵ If the cost of preparing VOC balance sheets is disproportionately high, the Directorate General of Customs may grant exceptions to paragraphs 1 and 2.

Persons who produce VOCs must report to the Directorate General of Customs, which shall maintain a register.

A tax demand is made:

a.

for VOCs produced within Switzerland, at the moment when they leave the manufacturer, or are used by the manufacturer;

b.

for VOCs subject to subsequent payment of the tax under Article 22 paragraph 2, at the moment when the beneficiary uses the VOCs, or passes them on to a third party.

¹ Manufacturers who place VOCs on the market or use them themselves, as well as persons who supply VOCs wholesale and possess an authorisation to obtain VOCs provisionally exempted from the tax (Art. 21 para. 2) must submit a tax declaration to the Directorate General of Customs by the 25th day of the month following the origin of the tax demand.³⁵

² Persons who are required to pay the tax subsequently in accordance with Article 22 paragraph 2 must submit a tax declaration to the cantonal authorities within six months of the end of their financial year.

³ The declaration shall contain details of the type and quantity of the VOCs placed on the market or used. It shall be made on an official form. The Directorate General of Customs may accept other manners of presentation.

⁴ The declaration serves as a basis for assessing the tax. The relevant authorities reserve the right of review.

⁵ Any person who fails to complete the tax declaration in full or to submit it on time shall pay interest on the tax due.³⁶

The tax is calculated on the basis of the quantity of VOCs at the time the tax demand is made.

¹ The Directorate General of Customs shall assess the amount of tax in a ruling.

² The period allowed for payment shall be 30 days.

³ Interest shall be payable in the case of late payment.

If the Directorate General of Customs should inadvertently fail to assess a tax which is due, or if the assessment is too low or any refund is too high, it may demand the amount due within one year of the notification of the ruling.

¹ The tax demand shall prescribe ten years after the end of the calendar year in which it originated.

² The prescriptive period shall be interrupted:

a.

if the tax payer acknowledges the tax demand;

b.

by each official act by which the tax demand is made to the tax payer.

³ The prescriptive period starts again following each interruption.

⁴ The tax demand prescribes in every case fifteen years after the end of the calendar year in which it originated.

¹ Tax is refunded only if the entitled persons prove that they have used the VOCs in such a way that these are exempt from the tax.³⁷

² Entitled persons must retain all documents necessary for the justification of a refund for five years after submitting a request for a refund.

³ If the requested refund is less than 3000 Swiss francs, it shall not be paid. The foregoing does not apply to refunds of at least 300 Swiss francs for the export of VOCs.

^3bis Two or more entitled persons may form a group and submit a joint request for a refund. The payment of the refund shall be made to the representative designated by the group.³⁸

⁴ Entitled persons must prove that the tax has been paid.³⁹

⁵ Requests for refund may be made only after the end of the financial year unless they concern an export.

¹ The right to a refund, unless it concerns an export, must be claimed within six months of the end of the financial year. The FOCBS may on request extend this deadline by 30 days in justified cases.⁴⁰

² The right to a refund expires in all cases two years after the grounds for a refund originated.

¹ The request for a refund must be made on an official form and be submitted to:

a.

the cantonal authorities;

b.

the Directorate General of Customs, in the case of exported VOCs.

² In the case of exported VOCs, the request must contain:

a.

the quantity of VOCs exported over a maximum period of twelve months, as declared on the export documents;

b.

reports on manufacture, samples contained in their original packaging, or other documentation required to assess the quantity of VOCs exported;

c.

any further information required for the calculation of the request for a refunded by the Directorate General of Customs.

¹ The FOCBS may authorise persons to acquire VOCs provisionally exempt from tax provided that they undertake: ⁴³

a.

to use or handle at least 25t of VOCs per annum in such a way that they are not released to the environment;

b.

to export at least 25t of VOCs per annum;

c.⁴⁴

to process at least 25t of VOCs per annum into mixtures or products in which content does not exceed 3 per cent (% by weight); or

d.⁴⁵

to process at least 25t of VOCs per annum into mixtures or products that are not listed on the positive list of products.⁴⁶

^1a …⁴⁷

^1bis It may also grant this authorisation to persons who use a substance listed in Annex 1 of this Ordinance if they prove that:

a.

this substance amounts to at least 55 per cent of their entire consumption of VOCs;

b.

they use at least 1 tonne of this substance each year; and

c.

due to chemical transformation caused by the process for using the substance, on average no more than 2 per cent of the substance is released to the environment.⁴⁸

² Authorisation may also be granted to persons who deal wholesale in VOCs and prove average stocks of at least 10t of VOCs or an annual minimum turnover of 25 t of VOCs.⁴⁹

³ The formal commitment or the proof must be submitted to the Directorate General of Customs.

⁴ The Directorate General of Customs shall maintain a public register of persons who have been authorised to acquire provisionally exempted VOCs.⁵⁰

¹ Holders of an authorisation under Article 21 must submit the VOC balance sheet to the cantonal authorities no later than six months after the end of the financial year.

² For VOCs used in such a way that they are not exempt from tax, payments of the tax must be made subsequently.

³.…⁵¹

⁴ Documents relating to the procedure for obtaining VOC provisionally exempt from tax must be retained for five years after submission of the VOC balance sheet.⁵²

Any person required to make a customs declaration who applies for a new customs assessment in accordance with Article 34 paragraph 3 of the Customs Act of 18 March 2005⁵⁴ must prove that an authorisation to obtain VOCs provisionally exempt from tax existed at the time of the original customs declaration.

¹ …⁵⁶

² If the VOC balance sheet is incomplete or has not been submitted on time, the FOCBS shall allow a grace period within which to submit a proper balance sheet.⁵⁷

³ Interest shall be charged on the taxes due in accordance with Art. 22 paragraph 2 on the basis of the balance sheet submitted during the grace period. The charging of interest begins on expiry of the submission deadline in accordance with Art. 22 paragraph 1.

⁴ If the resubmission deadline in accordance with paragraph 2 expires without resubmission being made, the Directorate General of Customs shall assess the tax due in accordance with due discretion and taking account of outgoings taxed in previous years.

¹ The FOCBS shall suspend authorisation for the procedure for formal commitment, if:

a.

obligations to cooperate are breached, in particular if the VOC balance sheet is not submitted by the extended deadline; or

b.

the subsequent payment of the tax for the provisionally exempted VOCs appears to be jeopardised.

² Payment shall in particular appear to be jeopardised if:

a.

a credit check indicates that the solvency of the holder of the authorisation is questionable;

b.

the holder of the authorisation has defaulted in making payment; or

c.

the holder of the authorisation is not domiciled in Switzerland or is arranging to give up their domicile or place of business or permanent establishment in Switzerland or to be deleted from the Swiss Commercial Register.

¹ The insurers shall, on behalf and under the supervision of the Federal Office, distribute the revenue from the tax under deduction of the implementation costs to the population as instructed.⁶⁰

² The distribution shall be carried out in the next year but one (the year of distribution) based on the annual revenue from the tax obtained in the year of collection.

³ The annual revenue from the tax corresponds to the revenue collected by 31 December including interest.

⁴ The insurers are as follows:

a.

insurers providing mandatory health insurance in accordance with the Federal Act of 18 March 1994⁶¹ on Health Insurance (HIA);

b.

the military insurance fund in accordance with the Federal Act of 19 June 1992⁶² on Military Insurance (MIA).

⁵ The insurers shall distribute the annual revenue in equal parts to all those who, in the year of distribution:

a.

are required to insure themselves in terms of the HIA or of Article 2 paragraph 1 or 2 MIA; and

b.

are domiciled or habitually resident in Switzerland.

⁶ Persons who are insured for only part of the distribution year shall be entitled to a deduction pro rata temporis.⁶³

⁷ The insurers shall offset the amounts against the premiums due in the distribution year.⁶⁴

¹ The annual revenue shall be disbursed to the insurers proportionately by 30 June of each distribution year.

² The share paid to each insurer is calculated on the basis of the number of persons that it has insured who meet the requirements of Article 23 paragraph 5 on 1 January of the distribution year.

³ The difference between the share disbursed and the sum of the amounts actually distributed will in each case be settled in the following year.

¹ Each insurer shall report the following to the Federal Office of Public Health by 20 March of the distribution year:

a.

the number of persons that it insures that meet the requirements of Article 23 paragraph 5 as of 1 January of the distribution year;

b.

the sum actually distributed in the previous year.

² The insurers shall inform the insured persons of the amount to be distributed when notifying them of the new premium for the distribution year. In addition, they must provide the insured persons with a factsheet prepared by the FOEN on the redistribution procedure.⁶⁷

Compensation for the insurers is governed by Article 123 of the CO₂ Ordinance of 30 November 2012⁶⁹.

Manufacturers of VOCs must report to the Directorate General of Customs within three months of this Ordinance coming into force.

¹ This Ordinance comes into force on 1 January 1998.

² The incentive tax shall be levied for the first time on 1 January 2000.⁷⁰