Art. 1 Swiss territory
(Art. 3 let. a VAT Act)
Swiss ocean-going ships do not qualify as territory of the Swiss Confederation for the purposes of Article 3 letter a VAT Act.
641.201
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
of 27 November 2009 (Status as of 1 July 2022)
(Art. 3 let. a VAT Act)
Swiss ocean-going ships do not qualify as territory of the Swiss Confederation for the purposes of Article 3 letter a VAT Act.
(Art. 3 let. d VAT Act)
1 The sale of goods represents a supply of goods even if a reservation of title is recorded.
2 The transfer of ownership of goods as security or as a pledge does not represent a supply of goods. If the right under the transfer of ownership as security or under the pledge is enforced, a supply of goods takes place.
3 A sale of goods with simultaneous leaseback to the seller for use (sale and leaseback business) does not qualify as a supply of goods if at the time of the conclusion of the contract a re-transfer is agreed. In this case the service of the lessor does not qualify as making goods available for use, but as a financing service under Article 21 paragraph 2 number 19 letter a VAT Act.
(Art. 7 para. 3 let. a VAT Act)2
1 ...3
2 If the import is made in the supplier's own name based on a declaration of subjection, for serial transactions the prior supplies of goods are deemed to be made abroad and the subsequent supplies on Swiss territory.
3 If the supplier does not intend to import in its own name, it must disclose this on the customer's invoice.4
2 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
3 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
4 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 7 para. 1 VAT Act)
In relation to goods that have been moved from abroad into a warehouse on Swiss territory and are delivered from this warehouse, the place of supply is located abroad if the recipient of the supply and the consideration to be paid are known at the time the goods are moved onto Swiss territory and the goods are released for free circulation at the time of supply.
5 Amended by No I of the O of 30 Oct. 2013, in force since 1 Jan. 2014 (AS 2013 3839).
(Art. 7 para. 3 let. b VAT Act)
1 Where goods supplied from abroad onto Swiss territory are exempt from import tax because of the negligible amount of tax due, the place of supply is deemed to be abroad until the end of the month in which the supplier reaches the turnover threshold of 100 000 francs from such supplies.
2 From the following month the place of supply for all supplies made by the supplier from abroad onto Swiss territory is deemed to be on Swiss territory. From this time, the supplier must import the goods in its own name.
3 The place of supply remains on Swiss territory until the end of any calendar year in which the supplier fails to reach the turnover threshold of 100 000 francs from supplies in accordance with paragraph 1.
4 If the supplier fails to reach the turnover threshold but does not notify the FTA of this fact in writing, the supplier is deemed to be subject to the VAT Act in accordance with Article 7 paragraph 3 letter a.
6 Inserted by No I of the O of 15 Aug. 2018, in force since 1 Jan. 2019 (AS 2018 3143).
(Art. 7 paras. 2, 8 and 10 para. 3 VAT Act)
1 A permanent establishment is a fixed place of business through which the activity of the business is wholly or partly carried on.
2 In particular the following qualify as permanent establishments:
3 In particular the following are not permanent establishments:
(Art. 8 para. 2 let. e VAT Act)
Passenger transport by ship on Lake Constance, the Untersee and the Rhine between the Untersee and the Swiss border below Basel is deemed to be a supply made abroad.
7 Inserted by No I of the O of 12 Oct. 2011, in force since 1 Jan. 2012 (AS 2011 4739).
(Art. 9 VAT Act)
A transport service is also given if a means of transport with operating staff is made available for transport purposes.
(Art. 9 VAT Act)
1 If supplies under Article 8 paragraph 2 letters c and d VAT Act are made while transporting passengers in border areas that are partly on Swiss territory and partly abroad or are on Lake Constance, and if the place of supply cannot be clearly determined as being on Swiss territory or abroad, the supply is deemed to be made at the place where the person making the supply has its place of business, or a permanent establishment or, in the absence of such a place of business or such a permanent establishment, its domicile or the place from which it works.
2 If the taxable person proves that a supply under paragraph 1 was made abroad, Article 8 paragraph 2 letters c and d VAT Act applies.
8 Inserted by No I of the O of 12 Oct. 2011, in force since 1 Jan. 2012 (AS 2011 4739).
(Art. 10 VAT Act)
All permanent establishments on Swiss territory of a business domiciled abroad qualify together as a single independent taxable person.
9 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 10 para. 2 let. a and c and 14 para. 1 let. a and 3 VAT Act)
1 Businesses with place of business, domicile or permanent establishment on Swiss territory that commence their activity or extend their activity by taking over a business or opening a new business division are exempt from tax liability if at the time, based on the circumstances, it must be assumed that the turnover threshold referred to in Article 10 paragraph 2 letter a or c VAT Act for supplies made on Swiss territory and abroad will not be achieved in the following twelve months. If it is not yet possible at the time to assess whether the turnover threshold will be achieved, a re-assessment must be carried out within three months at the latest.
2 Where it must be assumed based on the re-assessment that the turnover threshold will be achieved, the exemption from tax liability ends either:
3 For businesses previously exempt from tax liability, the exemption from tax liability ends with the business year in which the relevant turnover threshold is achieved. If the activity giving rise to tax liability was not carried on for a full year, the turnover must be extrapolated to a full year.
10 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 10 para. 2 let. a and c and 14 para. 1 let. b and 3 VAT Act)
1 Businesses that do not have a place of business, domicile or permanent establishment on Swiss territory that make a supply for the first time on Swiss territory are exempt from tax liability if at the time, based on the circumstances, it must be assumed that the turnover threshold referred to in Article 10 paragraph 2 letter a or c VAT Act for supplies made on Swiss territory and abroad not will be achieved within the following twelve months. If it is not yet possible at the time to assess whether the turnover threshold will be achieved, a re-assessment must be carried out within three months at the latest.
2 Where it must be assumed based on the re-assessment that the turnover threshold will be achieved, the exemption from tax liability ends either:
3 For businesses previously exempt from tax liability, the exemption from tax liability ends with the business year in which the relevant turnover threshold is achieved. If the activity giving rise to tax liability was not carried on for a full year, the turnover must be extrapolated to a full year.
11 Inserted by No I of the O of 12 Nov. 2014 (AS 2014 3847). Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 10 para. 2 let. b VAT Act)
1 Telecommunication and electronic services are in particular:
2 Telecommunication or electronic services do not include in particular:
12 Amended by Annex 2 No II 2 of the Gambling Ordinance of 7 Nov. 2018, in force since 1 Jan. 2019 (AS 2018 5155).
13 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 12 para. 1 VAT Act)
1 The sub-division of a public authority into agencies follows the classification in the financial accounts, provided this corresponds with the organisational and functional structure.
2 Other public law institutions covered by Article 12 paragraph 1 VAT Act are:
3 For purposes of cross-border collaboration, foreign public authorities may also be included in special-purpose associations and simple partnerships.
4 An institution within the meaning of paragraph 2 is a taxable person as a whole.
14 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 12 para. 4 VAT Act)
The following supplies in particular of public authorities are of a business character and therefore taxable:15
15 Amended by No I of the O of 18 June 2010, in force since 1 Jan. 2010 (AS 2010 2833).
16 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 13 VAT Act)
There is common management if the behaviour of a legal entity is controlled by the majority of the votes, by contract or by other means.
(Art. 13 VAT Act)
1 Unincorporated entities without legal capacity are equivalent to legal entities for the purpose of Article 13 VAT Act.
2 Insurance agents may be members of a group.
3 ...18
18 Repealed by No I of the O of 12 Nov. 2014, with effect from 1 Jan. 2015 (AS 2014 3847).
(Art. 13 VAT Act)
1 The members of the VAT group may be freely determined from among those entitled to participate in the group taxation.
2 The formation of several sub-groups is permissible.
(Art. 13 and 67 para. 2 VAT Act)
1 On application, the FTA shall authorise group taxation, provided the relevant conditions are met.
2 The application must enclose written declarations by each group member, in which they declare their consent to group taxation and its effects and to joint representation by the group member or person designated in the application.
3 The application must be submitted by the group representative. The group representative may be:
(Art. 13 VAT Act)
1 Resignation as representative of a VAT group is possible only at the end of a tax period. Notice of the resignation must be given to the FTA in writing at least one month in advance.
2 If the former group representative resigns and written notice of a new group representative is not given to the FTA one month before the end of the tax period, the FTA may after prior warning designate one of the group members as the group representative.
3 The group members may jointly withdraw the mandate from the group representative provided that at the same time they designate a new group representative. Paragraph 1 applies by analogy.
(Art. 13 VAT Act)
1 If a member no longer fulfils the requirements for participating in the group taxation, the group representative must notify the FTA in writing.
2 On application, the legal entity may join an existing group or a member can leave a group. The FTA authorises the entry or withdrawal for the beginning of the following or the end of the current tax period.
3 If a legal entity, for whom the requirements for participation in the group taxation were not formerly given, now fulfils the requirements, admission to an existing VAT group can also be applied for during the current tax period, provided the relevant application is submitted to the FTA in writing within 30 days of publication of the applicable change in the Commercial Register or after the requirements are met.
(Art. 13 VAT Act)
1 The members must close their accounts on the same balance sheet date; this does not apply to holding companies if for accounting reasons they have a different balance sheet date.
2 Every member must prepare an internal tax return, which must be consolidated in the VAT group's return.
(Art. 15 para. 1 let. c VAT Act)
1 The joint and several liability of a member of a VAT group extends to all tax, interest and cost claims that arise during its membership, with the exception of fines.
2 If legal enforcement has been initiated against a group member, additional tax has been claimed by an assessment notice from the group representative or if an audit has been announced, a group member may not elude joint and several liability by withdrawing from the group.
(Art. 15 para. 4 VAT Act)
When part of a claim to a consideration is assigned, the VAT is also assigned in the same proportion. Assignment of a net claim without VAT is not possible.
(Art. 15 para. 4 VAT Act)
1 Liability under Article 15 paragraph 4 VAT Act is limited to the amount of the VAT amount that has actually been collected by the assignee during an enforcement procedure against the taxable person from the time of pledge or from the time bankruptcy proceedings are opened.
2 In a pledge or pledge realisation procedure against a taxable person, the FTA must inform the assignee immediately after receipt of the pledge deed of its liability.
3 After bankruptcy proceedings are opened against a taxable person, the FTA may claim on the liability of the assignee irrespective of prior notification.
(Art. 15 para. 4 VAT Act)
By remitting to the FTA the VAT also assigned and collected with the claim the assignee is released in the same amount from the liability.
(Art. 18 para. 1 VAT Act)
The provision of supplies to closely related persons constitutes a supply relationship. Assessment is governed by Article 24 paragraph 2 VAT Act.
19 The correction of 12 Dec. 2017 only concerns the French text (AS 2017 7263).
(Art. 18 VAT Act)
A supply relationship does not exist in the cross-border posting of employees within a group, if:
(Art. 18 para. 2 let. a VAT Act)
Subsidies or other public contributions are in particular amounts paid by public authorities as:
(Art. 18 para. 2 VAT Act)
1 Cash flow remittances that do not constitute considerations under Article 18 paragraph 2 VAT Act, in particular within educational and research cooperation projects, are not subject to the tax.
2 The input tax deduction under Article 33 paragraph 2 VAT Act must be made by the last payment recipient.
(Art. 19 para. 1 VAT Act)
1 Special tools that a taxable person purchases, has made to order, or makes himself specifically for the performance of a manufacturing contract constitute part of the supply of the goods that they are used to manufacture. It is irrelevant whether the special tools:
2 Special tools are in particular printing plates, photolithos and photo settings, punching and draw tools, gauges, jigs, pressing and spraying forms, castings, foundry modules, dies and films for printed circuits.
(Art. 19 para. 2 VAT Act)
Article 19 paragraph 2 VAT Act applies by analogy when determining whether in the case of combinations of supplies the place of supply is located on Swiss territory or abroad.
22 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 19 para. 2 VAT Act)
An import tax assessment under Article 112 also applies to the Swiss tax, provided the combination of supplies was not processed or changed after the import assessment.
(Art. 21 para. 2 no 3 VAT Act)
1 Human medical treatment is the diagnosis and treatment of illnesses, injuries and other disorders of the physical and mental health of humans and activities that serve the prevention of human illnesses and health disorders.
2 The following are equivalent to human medical treatment:
3 The following in particular do not constitute human medical treatment:
(Art. 21 para. 2 no 3 VAT Act)
1 A provider possesses a licence to practise its profession within the meaning of Article 21 paragraph 2 number 3 VAT Act, if it:
2 Members of human medical and nursing professions within the meaning of Article 21 paragraph 2 number 3 VAT Act are in particular:
23 Inserted by No I of the O of 30 Oct. 2013, in force since 1 Jan. 2014 (AS 2013 3839).
24 Inserted by No II of the O of 18 Dec. 2020 (Sars-CoV-2 Rapid Tests) (AS 2020 5801). Amended by No I of the O of 17 Dec. 2021, in force since 1 Jan. 2022 till 31 Dec. 2022 (AS 2021 891).
26 Inserted by No II of the O of 27 Jan. 2021 (AS 2021 53). Amended by No II of the O of 3 Dec. 2021, in force from 1 Jan. 2022 until 31 Dec. 2022 (AS 2021 825).
(Art. 21 para. 2 nos 14 and 16 VAT Act)
1 ...27
2 Creators within the meaning of Article 21 paragraph 2 number 16 VAT Act are creators of works under Articles 2 and 3 CopA, to the extent they provide cultural supplies of services and supplies of goods.
27 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
28 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 21 para. 2 Sec. 28 let. b and c VAT Act)
1 Interests of public authorities in private or public companies within the meaning of Article 21 paragraph 2 number 28 letter b VAT Act include both direct and indirect equity interests.
2 Institutions and foundations established by public authorities within the meaning of Article 21 paragraph 2 number 28 letter c VAT Act include institutions and foundations both directly and indirectly established by public authorities.
3 The tax exemption extends to:
29 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 21 para. 7 VAT Act)
1 Educational and research institutions are:
2 Private sector businesses do not qualify as educational and research institutions.
30 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 22 VAT Act)
The option for declaration in the tax return must be exercised in the tax period in which the sales tax debt arose. On expiry of the finalisation deadline under Article 72 paragraph 1 VAT Act, it is no longer possible to exercise the option or not to continue with an exercised option.
32 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
33 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 23 para. 4 VAT Act)
1 Exempt from the tax with credit are:
2 Domestic sections of international flights are exempt from tax with credit if the flight is interrupted on Swiss territory only by a technical stopover or to change to a connecting flight.
(Art. 23 para. 4 VAT Act)
1 Cross-border transport by rail is exempt from the tax with credit, subject to paragraph 2, provided it is a section of a journey for which there is an international ticket. This includes:
2 For the tax exemption with credit, the portion of the ticket price covering the foreign section of the journey must be higher than the VAT not chargeable because of the tax exemption with credit.
3 No tax exemption with credit is granted on the sale of flat price tickets, in particular the GA Travelcards and the Half-Fare Travelcards that are used in whole or part for tax exempt transport.
(Art. 23 para. 4 VAT Act)
1 Exempt from the tax with credit is the transport of persons by bus or coach on sections of a journey which:
2 Exempt from the tax with credit is the transport of persons on purely Swiss sections of a journey solely in order to carry a person directly to a transport service under paragraph 1, provided it is invoiced together with the transport service under paragraph 1.
(Art. 107 para. 2 VAT Act)
1 Exempt from the tax with credit are turnovers in:
2 Alloys with two or more per cent by weight gold or, if platinum is contained therein, with more gold than platinum also constitute gold within the meaning of paragraph 1 letters d and e.
35 Amended by No I of the O of 30 Oct. 2013, in force since 1 Jan. 2014 (AS 2013 3839).
36 Amended by No I of the O of 30 Oct. 2013, in force since 1 Jan. 2014 (AS 2013 3839).
(Art. 24 para. 1 VAT Act)
1 For purposes of calculating the VAT payable, considerations paid in foreign currency must be converted into national currency at the date the tax claim arises.
2 A consideration is in foreign currency if the invoice or the receipt is issued in foreign currency. If no invoice or receipt is issued, the book entry of the supplier applies. It is irrelevant whether the payment is in national or foreign currency and in which currency the change is paid.
3 The conversion is made on the basis of the rate of exchange published by the FTA, whereby the taxable person may elect to use the average monthly rate or the daily exchange rate.37
3bis Where the FTA does not publish an exchange rate for a foreign currency, the daily exchange rate for the sale of the foreign currency published by a Swiss bank applies.38
4 Taxable persons that are members of a group of companies may use the group conversion rate for their conversion. This rate must be applied both to supplies within the group of companies and in relation to third parties.39
5 The procedure chosen (monthly average, daily or group rates) must be retained for at least one tax period.
37 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
38 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
39 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 24 para. 1 VAT Act)
In particular credit card commissions, cheque charges, WIR rebates, etc. do not constitute reductions of considerations.
(Art. 24 VAT Act)
1 On supplies to employees for consideration, the tax must be calculated on the consideration actually received. Article 24 paragraphs 2 and 3 VAT Act is reserved.
2 Supplies made by the employer to employees which must be declared in the salary certificate are deemed to be made with consideration. The tax must be calculated on the amount that is also applicable for direct taxes.
3 Supplies which do not have to be declared in the salary certificate constitute supplies made without consideration and it is assumed that a business reason exists.
4 Where lump sums that are permissible for determining the wage elements applicable for direct tax purposes may also serve to assess the VAT, they may also be used for VAT purposes.
5 When applying paragraphs 2-4, it is irrelevant whether the persons concerned are closely related persons as stipulated under Article 3 letter h VAT Act.40
40 The correction of 12 Dec. 2017 only concerns the French text (AS 2017 7263).
(Art. 24 para. 6 let. d VAT Act)
1 The FTA shall establish for every fund the amount of the deduction in per cent which applies to the individual affiliated waste disposal organisations and waterworks.
2 It shall take into consideration that:
41 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 24a para. 4 VAT Act)
1 Works of art means the following physical works by creators as referred to in Article 21 paragraph 2 number 16 VAT Act:
2 Antiques are moveable goods that are more than 100 years old.
3 Collectors' items are in particular also:
(Art. 24a para. 5 VAT Act)
1 Where the reseller has purchased collectors' items for a total price, it must apply the margin taxation to the sale of all these collectors' items.
2 The consideration from the resale of individual collectors' items purchased for a total price must be declared in the reporting period in which it was generated. As soon as the considerations exceed the total price when added together, they become taxable.
3 Where collectors' items are purchased with other goods for a total price the margin taxation only applies if the portion of the purchase price attributable to the collectors' items can be estimated.
(Art. 24a VAT Act)
Where the taxable person details the tax on the resale of collectors' items clearly on the invoice, it must pay the tax and may neither apply margin taxation nor deduct the notional input tax.
(Art. 24a VAT Act)
(Art. 25 para. 2 let. a no 8 VAT Act)
Medication is defined as:
42 Amended by No I of the O of 18 June 2010, in force since 1 Jan. 2010 (AS 2010 2833).
44 Amended by No I of the O of 8 March 2019, in force since 1 April 2019 (AS 2019 911).
45 Amended by No I of the O of 8 March 2019, in force since 1 April 2019 (AS 2019 911).
46 Amended by No III 1 of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 349).
(Art. 25 para. 2 let. a no. 9 VAT Act)
Newspapers and magazines without advertising character are printed matter that fulfils the following conditions:
(Art. 25 para. 2 let. abis VAT Act)
1 Electronic newspapers and magazines without advertising character are electronic products that:
49 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 25 para. 2 let. a no 9 VAT Act)
Printed matter which fulfils the following conditions constitutes books and other printed matter without advertising character:
(Art. 25 para. 2 let. abis VAT Act)
1 Electronic books without advertising character are electronic products that:
50 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 25 para. 2 let. a no 9 VAT Act)
1 Printed and electronic products have advertising character if their content is clearly designed to promote the business activity of the publisher or of a third party behind the publisher.
2 Third parties behind a publisher are:
3 Advertising is both direct advertising, such as advertisements, and indirect advertising, such as advertorials or infomercials.
51 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 25 para. 3 VAT Act)
1 Preparation is the cooking, heating, mixing, preparation and blending of food52. The mere maintaining of the temperature of food ready for consumption is not considered preparation.
2 Food service is in particular the arrangement of food on plates, the setting up of cold or warm buffets, the pouring of drinks, the laying and clearing of tables, the serving of the guests, the management or supervision of the serving staff and the operation and provisioning of self-service buffets.
52 Revision of term relevant only to Swiss language versions in accordance with Annex No 1 of the Ordinance on Foodstuffs and Utility Articles of 16 Dec. 2016, in force since 1 May 2017 (AS 2017 283).
(Art. 25 para. 3 VAT Act)
1 Special installations for the consumption of food on the premises (consumption installations) consist of tables, bar tables, counters and other eating surfaces provided for consumption or similar installations, in particular in means of transport. It is irrelevant:
2 The following do not constitute consumption installations:
(Art. 25 para. 3 VAT Act)
1 Delivery is the supply of food by the taxable person to customers at their homes or to another place designated by them without further preparation or service.
2 Takeaway food is food which the customer takes after purchase to another place and does not consume on the premises of the supplier. The following in particular characterise takeaway food:
3 The FTA shall provide for simplifications within the meaning of Article 80 VAT Act for certain sites and events.
(Art. 25 para. 3 VAT Act)
A suitable organisational measure is in particular the issue of receipts that indicate whether a restaurant supply, a delivery of food or a supply of goods for takeaway was provided.
(Art. 26 para. 3 VAT Act)
Till receipts for amounts up to 400 francs need not contain details about the recipient of the supply. Such receipts do not entitle the recipient to a tax refund in the refund procedure.
(Art. 28 VAT Act)
Article 45 applies by analogy to the calculation of the deductible input taxes.
(Art. 28 para. 1it. a VAT Act)
1 The Swiss tax is deemed to be invoiced if it is recognisable to the recipient of the supply that the supplier has demanded payment of the VAT from it.
2 The recipient of the supply does not have to verify whether the VAT was rightly demanded. If, however, it knows that the person that has transferred the tax is not registered as a taxable person, an input tax deduction is not permitted.
53 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 107 para. 2 VAT Act)
The tax on supplies of goods and on supplies of services which are used for turnovers under Article 44 and imports under Article 113 let. g may be deducted as input tax.
54 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 28a para. 1 and 2 VAT Act)
1 Where exclusively individualisable moveable goods are purchased for a total price, notional input tax may be deducted.56
2 The deduction of notional input tax is not permitted if the total price covers any collectors' items (Art. 48a) or non-individualisable moveable goods and the share of the purchase price attributable to goods referred to in Article 28a VAT Act cannot be estimated.
3 The deduction of notional input tax is not permitted where:
4 In the case of payments made under the claim settlement, notional input tax may only be deducted based on the actual value of the good at the time that it is taken over.
56 The correction of 30 Jan. 2018 only concerns the Italian text (AS 2018 521).
Repealed
(Art. 30 VAT Act)
The correction of the input tax deduction may be calculated:
(Art. 30 VAT Act)
The FTA lays down flat rates in particular for:
(Art. 30 VAT Act)
If the taxable person bases the correction of the input tax deduction on its own calculations, it must give evidence in detail concerning the facts underlying the calculations and carry out a plausibility test.
(Art. 30 VAT Act)
1 The taxable person may use one or more methods to calculate the correction of the input tax deduction, provided the method(s) lead to an adequate result.
2 Adequate is any use of one or more methods that takes account of the principle of efficiency of imposition, is auditable economically and allocates the input taxes according to their use for a particular activity.
(Art. 31 VAT Act)
1 The input tax deduction must be corrected in full on goods and services not put to use.
2 The input tax deduction must be corrected on goods and services put to use that are still available at the time the requirements are no longer fulfilled and have a fair value. In the case of supply of services in the fields of consulting, accounting, staff recruitment, management and advertising, it is assumed they are exhausted at the time of their acquisition and are no longer available.
3 In the case of self-manufactured goods, for putting the infrastructure to use, a flat rate surcharge of 33 per cent must be made on the input taxes on materials and on any third party work on semi-finished goods. Alternatively, effective proof of the input taxes applicable to the use of the infrastructure may be provided.
4 If subsequently the requirements for the input tax deduction are only partially fulfilled, the correction must be made to the extent that the use no longer entitles the input tax deduction to be made.
(Art. 31 para. 3 VAT Act)
1 The fair value must be calculated on the basis of the acquisition cost, for real estate excluding the value of the land and of value enhancing expenditures. Not to be considered are, however, the value maintenance expenditures. Value maintenance expenditures are those that serve only to maintain the value of the good and its ability to function, in particular service, maintenance, operating and repair costs.
2 In determining the fair value of goods and services put to use, in the first tax period of use the loss in value must be considered for the entire tax period. In the last uncompleted tax period, on the other hand, no depreciation may be made unless the change in use occurs on the last day of the tax period.
(Art. 31 VAT Act)
If the renovation costs in a construction phase exceed in total 5 per cent of the insurance value of the building prior to renovation, the input tax deduction must be corrected on the basis of the total costs, regardless of whether the costs are for value enhancing or maintenance expenditures.
(Art. 32 VAT Act)
1 The input tax deduction may be corrected in full on goods and services not put to use.
2 The input tax deduction may be corrected on goods and services put to use which still exist and have a fair value at the time the requirements for the input tax deduction are fulfilled. For services in the fields of consulting, accounting, staff recruitment, management and advertising, it is assumed that they are used on acquisition and thereafter cease to exist.
3 In the case of self-manufactured goods, for putting the infrastructure to use, a flat rate surcharge of 33 per cent may be made on the input taxes on materials and on any third party work on semi-finished goods. Alternatively, effective proof of input taxes applicable to the use of the infrastructure may be provided.
4 If subsequently the requirements for the input tax deduction are only partially fulfilled, the correction may be made only to the extent of the use entitling the input tax deduction to be made.
(Art. 32 para. 2 VAT Act)
1 The fair value must be calculated on the basis of the acquisition cost, for real estate excluding the value of the land and of value enhancing expenditures. Not to be considered are, however, the value maintenance expenditures. Value maintenance expenditures are those that serve only to maintain the value of the good and its ability to function, in particular service, maintenance, operating and repair costs.
2 In determining the fair value of goods and services put to use, in the first tax period of use the loss in value must be considered for the entire tax period. In the last uncompleted tax period, on the other hand, no depreciation must be made unless the change in use occurs on the last day of the tax period.
(Art. 32 VAT Act)
If the renovation costs in a construction phase exceed in total 5 per cent of the insurance value of the building prior to renovation, the entire input tax deduction may be corrected on the basis of the total costs, regardless of whether the costs are for value enhancing or maintenance expenditures.
(Art. 33 para. 2 VAT Act)
1 The input tax need not be reduced if the funds under Article 18 paragraph 2 letters a-c VAT Act are attributable to a business activity for which no input tax is incurred or for which no claim to input tax deduction exists.
2 To the extent the funds under Article 18 paragraph 2 letters a-c VAT Act can be attributed to a specific business activity, only the input tax on the expenditures for this business activity must be reduced.
3 If the funds under Article 18 paragraph 2 letters a-c VAT Act are paid to cover an operating deficit, the input tax must be reduced overall in the proportion of these funds to the total turnover, excluding VAT.
(Art. 37 para. 1-4 VAT Act)
1 The taxable supplies made for consideration on Swiss territory must be considered in assessing whether the conditions under Article 37 VAT Act are fulfilled.
2 The net tax rate method may not be chosen by taxable persons who:
3 Taxable persons who report using the net tax rate method may not opt for the taxation of supplies under Article 21 paragraph 2 numbers 1-24, 27, 29 and 30 VAT Act. If the tax is nevertheless invoiced, the tax charged must be paid to the FTA with reservation of Article 27 paragraph 2 VAT Act.60
58 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
59 Inserted by No I of the O of 15 Aug. 2018, in force since 1 Jan. 2019 (AS 2018 3143).
60 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 Persons newly entered in the Register of Taxable Persons (VAT Register) who wish to submit to the net tax rate method must notify the FTA in writing within 60 days of notification of their VAT number.
2 The FTA shall approve the use of the net tax rate method if in the first 12 months both the expected turnover and the expected taxes do not exceed the thresholds in Article 37 paragraph 1 VAT Act.
3 If no request is made within the period in paragraph 1, the taxable person must report for at least three years using the effective reporting method before it may submit to the net tax rate method. An earlier change of the reporting method is possible at the time of any adjustment to the net tax rate that is not due to a change in the rates of taxation under Articles 25 and 55 VAT Act.61
4 Paragraphs 1-3 also apply to retroactive entries analogously.
5 The VAT chargeable on the stock of goods, the operating material and the fixed assets at the start of tax liability is taken into account in applying the net tax rate method. No subsequent input tax deduction may be made.
61 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 Taxable persons who wish to change from the effective reporting method to the net tax rate method must notify the FTA in writing at the latest 60 days after the beginning of the tax period from which the change is to be made. If the notification is late, the change is effective for the beginning of the subsequent tax period.
2 The FTA shall approve the use of the net tax rate method if in the prior tax period neither of the thresholds in Article 37 paragraph 1 VAT Act was exceeded.
3 On changing from the effective reporting method to the net tax rate method, no corrections or changes shall be made to the stock of goods, the operating material and the fixed assets. The foregoing does not apply to a correction under Article 93 where immovable goods are used after the change to a negligible extent for an activity entitling the input tax deduction to be made.62
4 If simultaneously with submission to the net tax rate method the manner of reporting under Article 39 VAT Act is also changed, the following corrections must be made:
62 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
The FTA may retroactively withdraw approval to use this reporting method from taxable persons who have been permitted to use the net tax rate method on the basis of false information.
(Art. 37 para. 1-4 VAT Act)
1 Taxable persons who wish to change from the net tax rate method to the effective method must notify the FTA in writing at the latest 60 days before the beginning of the tax period from which the change is to be made. If the request is late, the change is effective from the beginning of the subsequent tax period.
2 Persons who exceed one or both thresholds laid down in Article 37 paragraph 1 VAT Act in two consecutive tax periods by up to 50 per cent must change to the effective reporting method at the beginning of the following tax period.
3 Persons who exceed one or both thresholds laid down in Article 37 paragraph 1 VAT Act by more than 50 per cent must change to the effective reporting method at the beginning of the following tax period. If the thresholds are exceeded in the first 12 months of submission to the net tax rate method, approval is withdrawn retroactively.
4 If one or both thresholds are exceeded by more than 50 per cent due to the takeover of all or part of the assets under the notification procedure, the taxable person may decide whether it wishes to change to the effective reporting method retroactively to the beginning of the tax period in which the takeover took place or at the beginning of the subsequent tax period.
5 On change from the net tax rate method to the effective reporting method, there are no corrections to the stock of goods, the operating material and the fixed assets. The foregoing does not apply to a subsequent input tax deduction under Article 32 VAT Act if the stock of goods, the operating material and the fixed assets are used to a greater extent after the change for an activity entitling the input tax deduction to be made.63
6 If at the same time as the change to the effective reporting method the manner of reporting under Article 39 VAT Act is also changed, the following corrections must be made:
63 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 If a taxable person reporting under the net tax rate method ceases its business activities or if, due to failing to reach the turnover threshold in Article 10 paragraph 2 letter a VAT Act, it is exempt from tax liability, the turnovers generated prior to being removed from the VAT Register, the work in progress and, if reporting according to collected considerations, the debtor items are also to be reported at the approved net tax rates.
2 On the date of removal from the VAT Register, the tax must be reported on the fair value of immoveable goods at the standard rate applicable at that time, provided:64
3 In determining the fair value of immovable goods, for every year expired one twentieth is reduced on a straight line basis.
64 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
65 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 If, from the date of the takeover, a taxable person reporting under the net tax rate method does not use all or part of the assets taken over using the notification procedure under Article 38 VAT Act or uses such assets only to a lesser extent than the seller of a business entitled to deduct input tax, the procedure is as follows:66
2 If a taxable person reporting under the net tax rate method uses all or part of the assets taken over using the notification procedure under Article 38 VAT Act to a greater extent than the seller for a business activity entitling him to deduct the input tax, a correction is not permitted.
66 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 Taxable persons must report their business activities at the net tax rates approved by the FTA.
2 If a business activity ceases or a new business activity is begun or if the turnover shares of the business activities change in such a way that a new allocation of the net tax rates becomes necessary, the taxable person must contact the FTA.
3 Taxable persons for whom two different net tax rates have been approved must record the revenues for each of the net tax rates separately.
(Art. 37 para. 1-4 VAT Act)
The taxable person is permitted to use a single net tax rate unless a case under Article 86 paragraph 1 or Article 89 paragraphs 3 or 5 applies.
(Art. 37 para. 1-4 VAT Act)
1 The taxable person is permitted to use two net tax rates if:
2 The 10 per cent threshold is calculated:
3 The turnovers of business activities with the same net tax rate must be accumulated in investigating whether the 10 per cent threshold is exceeded.
4 In the case of a taxable person who has been permitted the use of two net tax rates, if only one or more business activities for which the same net tax rate is provided exceed the 10 per cent threshold during two consecutive tax periods, the approval for the use of the second net tax rate lapses at the beginning of the third tax period.
67 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 If only two of the taxable person's business activities exceed the 10 per cent threshold, the use of the two net tax rates laid down for these businesses will be approved.
2 If more than two business activities exceed the 10 per cent threshold, use of the following net tax rates is approved:
(Art. 37 para. 1-4 VAT Act)
1 The turnovers from the business activities of a taxable person who has been permitted the use of two net tax rates are taxable:
68 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 Mixed branches of the industry are branches of the industry in which several business activities are normally carried on which, if considered separately, would be reported using different net tax rates.
2 The FTA shall lay down in an ordinance:
3 Articles 86-88 apply to reporting using net tax rates if the share of one or more business activities usually ancillary to a branch of the industry for which under the FTA's ordinance the same net tax rate would apply exceed 50 per cent of the turnover of the taxable main business and the taxable business usually ancillary to an industry.69
4 The 50 per cent threshold is calculated:
5 If a taxable person who operates in a mixed branch of the industry also carries on business activities that are alien to the branch of the industry, reporting using net tax rates for these business activities is governed by Articles 86-88.
69 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
1 The FTA shall make a procedure for the approximate compensation of the input taxes incurred available to taxable persons reporting using the net tax rate method for:
2 Taxable persons reporting using the net tax rate method who purchase individualisable moveable goods without openly transferred tax may use the procedure made available by the FTA to compensate the notional input tax. The procedure does not apply to used automobiles with an overall weight not exceeding 3,500 kg or to goods:
2bis The procedure under paragraph 2 applies in an analogous manner when collectors' items (Art. 48a) are sold.72
3 For businesses and events under Article 55 paragraph 3, the FTA provides for a flat rate arrangement for the approximate division of the turnovers between the two net tax rates.
71 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
72 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
Taxable persons reporting using the net tax rate method who acquire supplies from businesses with their place of business abroad under Articles 45-49 VAT Act, must pay the acquisition tax semi-annually at the appropriate statutory tax rate.
(Art. 37 para. 1-4 VAT Act)
Own use, with the exception of Article 83 paragraph 1 letter b, is taken into account in applying the net tax rate method.
(Art. 37 para. 1-4 VAT Act)
1 If an immovable good is no longer used in the business activities of the taxable person or is used newly for a business activity exempted from the tax without credit under Article 21 paragraph 2 VAT Act, the tax must be charged on the fair value at the standard rate at that time provided:73
2 To determine the fair value of the immovable goods, for every completed year the value is reduced by one twentieth on a straight line basis.
73 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
74 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)75
1 Supplies to closely related persons are, subject to Article 93, reported as follows when reporting using net tax rates:
2 Using net tax rates for reporting, supplies to employees are treated as follows:
3 For closely related persons who are also employees, paragraph 2 applies.78
4 Supplies that must be included in the salary certificate for direct tax purposes always constitute supplies for consideration. The tax must be calculated on the amount that is also applicable for direct tax purposes.79
75 The correction of 12 Dec. 2017 only concerns the French text (AS 2017 7263).
76 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
77 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
78 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
79 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
Sales of equipment and fixed assets that are not used exclusively to provide supplies that are exempt from the tax without credit must be reported at the approved net tax rate. If reporting is done using two net tax rates and the equipment or the fixed assets were used for both business activities, the considerations must be reported at the higher net tax rate.
80 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 1-4 VAT Act)
If a taxable person reporting using net tax rates invoices a supply at an excessive tax rate, the person must, in addition to the VAT calculated at the net tax rate, also pay the difference between the tax calculated using the tax rate disclosed and the tax calculated using the tax rate under Article 25 VAT Act. The consideration is regarded as including VAT.
(Art. 37 para. 5 VAT Act)
1 Related institutions under Article 37 paragraph 5 VAT Act are in particular communal associations and other combinations of public authorities, parishes, private schools and boarding schools, private hospitals, medical treatment centres, rehabilitation centres, sanatoria, private home care organisations, old people's homes, nursing homes, seniors residences, charitable businesses, such as disabled workshops, hostels and special schools, operators of sports facilities and cultural centres subsidised by public authorities, cantonal building insurers, water cooperatives, public transport businesses, private law forest corporations subsidised by public authorities, organisers of non-recurring cultural and sports events, associations under Articles 60-79 of the Civil Code81 (CC) and foundations under Articles 80-89bis CC.
2 There are no monetary thresholds for the use of the flat tax rate method.
3 Taxable persons who report using the flat tax rate method may not opt for the taxation of supplies under Article 21 paragraph 2 numbers 1-25, 27 and 29 VAT Act. If the tax is nevertheless invoiced, the tax charge must be paid to the FTA with reservation of Article 27 paragraph 2 VAT Act.82
4 Autonomous agencies under Article 12 paragraph 1 VAT Act that merge to form a single taxable entity (Art. 12 para. 2 VAT Act) may apply the flat rate tax method.83
82 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
83 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 5 VAT Act)
1 Public authorities and related institutions under Article 97 paragraph 1 which wish to report using the flat tax rate method must notify the FTA in writing.
2 The flat tax rate method must be retained for at least three tax periods. If the taxable person elects for the effective reporting method, the person may change to the flat tax rate method at the earliest after ten years. An earlier change of the reporting method is possible at the time of any adjustment to the flat tax rate that is not due to a change in the rates of taxation under Articles 25 and 55 VAT Act.84
3 Changes to the reporting method are possible at the beginning of a tax period. They must be notified to the FTA in writing at the latest 60 days after the beginning of the tax period from which the change is to be made. If the notification is late, the change is effective at the beginning of the subsequent tax period.
84 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 5 VAT Act)
1 When using the flat tax rate method, the tax claim is determined by multiplying the total of the considerations generated in a reporting period, including tax, by the flat tax rate approved by the FTA.
2 The FTA establishes the flat tax rates taking account of the input tax amounts usual in the relevant branch of the industry. A business activity for which no flat tax rate has been established must be reported at the rate applicable for the net tax rate method.
3 The taxable person must report each of its business activities with the appropriate flat tax rate. The number of applicable flat tax rates is not limited.
(Art. 37 para. 5 VAT Act)
Taxable persons reporting using the flat tax rate method who acquire supplies from businesses with their place of business abroad in accordance with Articles 45-49 VAT Act must pay the acquisition tax on a quarterly basis at the relevant statutory tax rate.
85 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 37 para. 5 VAT Act)
Unless this Section provides otherwise, Articles 77-96 also apply.
(Art. 38 para. 1 VAT Act)
Every smallest unit in a business that is viable by itself constitutes a part of the assets.
(Art. 38 para. 1 VAT Act)
The notification procedure must also be used if the purchaser only becomes liable for the tax in connection with the transfer of all or part of the assets.
(Art. 38 para. 1 VAT Act)
If the notification procedure is used, this must be stated on the invoice.
(Art. 38 para. 2 VAT Act)
Provided both parties are liable for the tax, the notification procedure may be used:
(Art. 38 para. 4 VAT Act)
It is assumed that the seller has used the assets transferred entirely for the business activities entitling the input tax deduction. A different degree of use must be proved by the purchaser.
(Art. 39 VAT Act)
1 On changing from reporting under the collected considerations to reporting under the agreed considerations method, the taxable person must in the reporting period following the change:
2 On changing from reporting under the agreed considerations to the collected considerations method, the taxable person must in the reporting period following the change:
3 If simultaneously with the change in the form of reporting the reporting method under Articles 36 and 37 VAT Act is also changed, Article 79 paragraph 4 or Article 81 paragraph 6 applies.
(Art. 39 VAT Act)86
1 On changing from reporting on the basis of the collected considerations to reporting on the basis of the agreed considerations, the taxable person must report the claims existing at the time of change at the approved net tax rates or, where applicable, flat tax rates in the reporting period following the change.87
2 On changing from reporting on the basis of the agreed considerations to reporting on the basis of the collected considerations, the taxable person must deduct the debtor items existing at the time of the change from the considerations collected in this reporting period in the reporting period following the change.
3 If at the same time as changing of the form of reporting the reporting method is also changed, Article 79 paragraph 4 or Article 81 paragraph 6 applies.
86 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
87 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 44 para. 2 VAT Act)
On assignment and pledge of the tax claim, the confidentiality provisions under Article 74 VAT Act do not apply.
88 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 45 para. 1 let. b and 52 let. 2 VAT Act)
1 Regardless of the storage device or the method of data storage, a data storage medium without market value is considered to be any device for storing data, which in the manner and nature and condition in which it is imported:
2 The data storage medium may in particular carry computer programmes and files, their updates and upgrades and sound and image data.
3 Crucial for the assessment of whether a data storage medium is a data storage medium without market value is the medium itself with the services included therein and the related rights not considering the legal transaction leading to the import.
4 The following goods are in particular deemed equivalent to data storage media without market value, provided the goods are acquired by the customer as a result of an independent legal transaction:
(Art. 52 para. 3 and 19 para. 2 VAT Act)
1 If an import assessment under Article 19 paragraph 2 VAT Act is requested, a cost calculation must be submitted at the time of customs clearance.
2 The cost calculation must show:
3 Cost elements that cannot be fully allocated to the individual supplies, such as overheads, profit or transport costs, must be allocated to the individual supplies by value.
4 The Federal Office for Customs and Border Security (FOCBS)89 may from case to case demand further documentation in order to review the calculation.
89 The name of this administrative unit was changed on 1 January 2022 in application of Art. 20 para. 2 of the Publications Ordinance of 7 Oct. 2015 (AS 2015 3989). This change has been made throughout the text.
(Art. 53 para. 2 and 107 para. 2 VAT Act)
Exempt from the import tax are:
(Art. 56 para. 3 VAT Act)
If the tax is paid via the centralised settlement procedure (CSP), the FOCBS may require a lump-sum security based on its risk assessment. It is calculated as follows:
(Art. 56 para. 3 VAT Act)
1 The amount of the security for conditional tax claims or in cases, in which payment reliefs under Article 76 paragraph 1 CustA91 are granted:
2 For international transits, the amount of the security is governed by international treaties.
92 Inserted by Annex No 2 of the O of 18 Nov. 2015, in force since 1 Jan. 2016 (AS 2015 4917)
(Art. 56 para. 5 VAT Act)
1 The notification of a subsequent adjustment of the considerations must contain the following information:
2 Price and value details in foreign currency adduced for the determination of the adjustment of the considerations must be converted into Swiss francs at the average exchange rate (selling) for the period.
3 The FOCBS may from case to case demand further documentation in order to determine the import tax liability.
(Art. 63 VAT Act)
1 Persons who wish to pay taxes under the transfer procedure require authorisation from the FTA.
2 If doubt exists as to whether the requirements for the transfer of the import tax are fulfilled, the FOCBS shall levy the tax.
3 The prescription of import tax liability that has been transferred is governed by Article 42 VAT Act.
4 The FTA shall regulate execution in consultation with the FOCBS.
(Art. 63 VAT Act)
1 Authorisation is granted if the taxable person:
2 The grant or extension of the authorisation may be made conditional on the provision of security in the amount of the anticipated claims.
93 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 63 VAT Act)
If any of the conditions for authorisation under Article 118 paragraph 1 letters a-d are no longer fulfilled, the taxable person must inform the FTA in writing without delay.
(Art. 63 VAT Act)
Authorisation is withdrawn if the taxable person no longer guarantees the correct functioning of the procedure.
(Art. 63 para. 2 VAT Act)
Articles 118-120 apply by analogy for authorisation under Article 63 paragraph 2 VAT Act.
94 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 66 para. 1 VAT Act)
Businesses that exclusively provide supplies on Swiss territory that are exempt from tax without credit may opt not to register with the FTA as a taxable person. The foregoing also applies to businesses without a place of business, domicile or permanent establishment on Swiss territory if they also make supplies for which they are exempt from tax under Article 10 paragraph 2 letter b VAT Act.
(Art. 70 para. 4 VAT Act)95
For the transmission and retention of paperless receipts, Articles 957-958f of the Code of Obligations97 and the Accounts Ordinance of 24 April 200298 apply.
96 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
99 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
95 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 71 and 72 VAT Act)
1 When using the effective reporting method, the taxable person must for reporting to the FTA record the following figures in a suitable manner:
2 The FTA may consolidate several figures under paragraph 1 into one field of the reporting form or refrain from requiring them in the periodic reporting.
(Art. 71 and 72 VAT Act)
1 When using the net tax rate or flat tax rate method, the taxable person must record the following figures in a suitable manner for reporting to the FTA:
2 The FTA may consolidate several figures under paragraph 1 under one field of the reporting form or refrain from requiring them in the periodic reporting.
(Art. 71 and 72 VAT Act)
1 The FTA may require the taxable person to submit, in particular, the following documentation:
2 From the turnover reconciliation it must be apparent how the declaration for the tax period, taking account of the different tax rates or the net tax rates and flat tax rates can be reconciled with the annual accounts. To be considered in particular are:
3 From the input tax reconciliation it must be apparent that the input taxes according to the input tax accounts or to other records have been reconciled with the input taxes declared.
4 The demand for additional documentation under paragraphs 1-4 does not represent a demand for comprehensive documentation within the meaning of Article 78 paragraph 2 VAT Act.
(Art. 72 VAT Act)
Errors in past returns must be corrected separately from the ordinary returns.
(Art. 73 para. 2 let. c VAT Act)
The obligation of third parties to provide information under Article 73 paragraph 2 letter c VAT Act does not apply to documents which
102 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76 para. 1 VAT Act)
1 The FTA shall designate a person responsible for data protection and data security advice.
2 This person shall monitor compliance with the data protection provisions and in particular ensure that a regular review is made of the accuracy and security of the data.
3 He or she shall also ensure that regular checks are carried out relating to the accuracy and complete transfer of the gathered data onto data carriers.
103 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76 para. 2 VAT Act)104
1 Data are processed for purposes of fulfilling the legally prescribed tasks exclusively by employees of the FTA or by qualified staff under the control of the FTA.
2 The FTA may compile and store data that it itself collects or consolidates or receives from persons involved in procedures, third parties or authorities electronically or in another form.105
3 ...106
104 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
105 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
106 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 76a para. 1 and 76d let. a VAT Act)
The FTA is responsible for the secure operation and the maintenance of the information system and for the legality of the data processing.
107 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76a para. 1 and 3 as well as 76d let. b and c VAT Act)
The data that the FTA may process under Article 76a paragraph 3 VAT Act are as follows:
108 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
109 Term in accordance with Annex No II 24 of the O of 17 Nov. 2021, in force since 1 Jan. 2022 (AS 2021 800).
(Art. 76 para. 2 VAT Act)
1 The FTA shall compile and maintain statistics to the extent necessary for the performance of its statutory tasks.
2 It may provide the federal and cantonal authorities and other interested persons with data for statistical purposes, provided they are anonymised and permit no inferences as to the persons in question. Article 10 paragraphs 4 and 5 of the Federal Statistics Act of 9 October 1992112 are reserved.
3 Non-anonymised data may be used for internal business audits and for internal business planning.
111 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76b and 76d let. d VAT Act)
The FTA may make the VAT returns available online to the Federal Statistical Office (FSO) in order to carry out statistical surveys provided the taxable person has consented to the FSO obtaining the data from the FTA.
113 Inserted by No I of the O of 8 March 2019, in force since 1 April 2019 (AS 2019 911).
(Art. 76b para. 2 VAT Act)
The FTA shall make the data under Article 134 accessible online to the persons in the FOCBS responsible for the imposition and collection of value added tax to the extent that these data are required for the correct and complete assessment of the import tax or for the conduct of criminal or administrative proceedings.
114 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76c para. 1 and 76d let. e and f VAT Act)
1 The FTA shall destroy the data at the latest after expiry of the periods laid down in Article 70 paragraphs 2 and 3 VAT Act and in Article 105 VAT Act. Excepted are data that are repeatedly required for the imposition of the VAT.
2 Prior to destroy the data shall be offered to the Federal Archives in accordance with the Archiving Act of 26 June 1998116 for archiving.
115 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 76d VAT Act)
1 For the evaluation of its internet service, the FTA may process data from persons who make use of this service (log files).
2 The data may be processed only for this analysis and only as long as necessary. After the evaluation they must be destroyed or anonymised.
117 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
118 Repealed by No I of the O of 18 Oct. 2017, with effect from 1 Jan. 2018 (AS 2017 6307).
(Art. 78 para. 2 VAT Act)
A demand for comprehensive documentation is deemed to have been made if a demand for the books of account for a financial year is made with or without the related booking receipts.
(Art. 81 VAT Act)
The FTA is entitled within the meaning of Article 89 paragraph 2 letter a of the Federal Supreme Court Act of 17 June 2005119 to appeal to the Federal Court.
(Art. 86 VAT Act)
If the debt enforcement claim under Article 86 paragraph 9 VAT Act is withdrawn, the taxable person bears the enforcement costs incurred.
(Art. 107 para. 1 let. a VAT Act)
1 Institutional and individual beneficiaries are entitled to claim relief from VAT.
2 Institutional beneficiaries are:
3 Individual beneficiaries are:
4 Swiss citizens have no claim to tax relief.
5 Relief from VAT is effected by tax exemption at source under Articles 144 and 145 and, in exceptional cases, by refund under Article 146.
(Art. 107 para. 1 let. a VAT Act)
1 Exempt from the tax are:
2 The tax exemption applies only to supplies of goods and supplies of services:
121 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 107 para. 1 let. a VAT Act)
1 An institutional beneficiary that wishes to claim a tax exemption must before every acquisition of supplies certify on the official form that the supplies acquired are for official use.
2 An individual beneficiary who wishes to claim tax exemption must before every acquisition of supplies have certified by the institutional beneficiary to which the person belongs, on the official form, that the person enjoys the status under Article 143 paragraph 3, which confers entitlement to tax free acquisition. The individual beneficiary must hand over the official form signed in person to the supplier and identify himself on every acquisition of supplies with the identification card issued by the competent federal authority.
3 A tax exemption under Article 144 paragraph 1 letter a may be claimed only if the effective acquisition price for the supplies indicated on the invoice or an equivalent document is at least 100 francs, including tax. This minimum amount does not apply to telecommunications and electronic services under Article 10 and for supplies of water in pipes, gas and electricity by utility companies.
4 The conditions under paragraphs 1-3 for claiming tax exemption do not apply to acquisitions of motor fuel for which the institutional or the individual beneficiary may claim exemption from the mineral oil tax based on Articles 26-28 of the Mineral Oil Tax Ordinance of 20 November 1996122, on Articles 30 and 31 of the Ordinance of 23 August 1989123 on the Customs Privileges of Diplomatic Missions in Bern and Consular Posts on Swiss territory and of Articles 28 and 29 of the Ordinance of 13 November 1985124 on the Customs Privileges of International Organisations, of States in their relations with such Organisations and of Special Missions of Foreign States. In this case the supplier must be able to prove that the FOCBS has not levied the mineral oil tax or has refunded it.
(Art. 107 para. 1 let. a VAT Act)
1 In justified cases, the FTA may on application refund tax amounts already paid for which a claim to tax relief exists; it may, in consultation with the FDFA, charge a processing fee for this service.
2 For the tax refund, Article 145 paragraph 3 applies by analogy.
3 An institutional beneficiary may not make more than two applications for a tax refund per calendar year. The official form must be used.
4 Individual beneficiaries may not make more than one application for a tax refund per calendar year. The applications by individual persons must be collected by the organisation to which they belong for submission once annually.
5 The FTA may, in consultation with the FDFA, set a minimum refund amount per application. No payment interest is paid on the refund amounts.
(Art. 107 para. 1 let. a VAT Act)
The taxable person must retain in full the originals of the official forms used, together with the other receipts, in accordance with Article 70 paragraph 2 VAT Act. For electronically transmitted and stored official forms, Article 122125 applies by analogy.
125 The reference has been adapted in application of Art. 12 para. 2 of the Publications Act of 18 June 2004 (SR 170.512) on 1. Jan. 2018.
(Art. 107 para. 1 let. a VAT Act)
The tax on supplies of goods, on imports of goods and on supplies of services that are used to effect tax free supplies to institutional and individual beneficiaries may be deducted as input tax.
(Art. 107 para. 1 let. a VAT Act)
1 If the conditions for a tax exemption under Articles 144 and 145 are not met or subsequently not fulfilled, in cases of tax exemption under Article 144 paragraph 1 letter a the institutional or the individual beneficiary is obliged to pay the taxable person an amount equivalent to the tax due. If this amount is not paid, it is due by the taxable person, to the extent this person is at fault. Institutional and individual beneficiaries are obliged to pay the tax subsequently on the acquisition of supplies of services from businesses with their place of business abroad.
2 The provisions of the Vienna Conventions dated 18 April 1961126 on Diplomatic Relations and dated 24 April 1963127 on Consular Relations and of the Headquarters Agreement are reserved.
(Art. 107 para. 1 let. a VAT Act)
The FTA can approve the voluntary taxation of the supplies referred to in Article 21 paragraph 2 numbers 20 and 21 VAT Act, without the value of the land, provided they have been made to institutional beneficiaries under Article 143 paragraph 2 letter a, regardless whether the institutional beneficiary is liable for tax on Swiss territory or not. This option is limited to properties and parts of properties used for administrative purposes, and in particular to offices, conference rooms, warehouses, parking places, or which are intended as the residence of the head of a diplomatic mission, a permanent mission or another representative in inter-governmental organisations or of a consular post.
(Art. 107 para. 1 let. b VAT Act)
1 The right to a refund of the taxes incurred under Article 28 paragraph 1 letter a and c VAT Act shall be granted to persons who import goods or have supplies made on the territory of the Swiss Confederation against a consideration provided they also:128
2 The entitlement to a tax refund remains intact if the person is exempt from tax liability under Article 10 paragraph 2 letter b VAT Act and does not waive this exemption.129
3 Refund of the tax is conditional on the state of residence or of place of business or of the permanent establishment of the applicant business granting a corresponding reciprocal right.
128 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
129 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 107 para. 1 let. b VAT Act)
1 Reciprocal right is deemed to be given if:
2 The FTA shall maintain a list of the states with which a reciprocal right declaration has been exchanged under paragraph 1 letter a.
(Art. 107 para. 1 let. b VAT Act)
1 The tax refund is commensurate in scope and limitations with the right of input tax deduction under Articles 28-30 and 33 paragraph 2 VAT Act. A refund is made at a rate of tax that is no higher than the statutory maximum rate for the supply concerned. Value added tax paid on supplies that are not subject to or exempt from tax under the VAT Act is not refunded.130
2 Travel agents and organisers of events with their place of business abroad are not entitled to refunds of the taxes which have been invoiced to them on the territory of the Swiss Confederation for the acquisition of supplies of goods and supplies of services that they charge on to customers.131
3 Repayable taxes are refunded only if their amount in a calendar year reaches at least 500 francs.
130 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
131 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 107 para. 1 let. b VAT Act)
1 The refund period corresponds to the calendar year. The application for a refund must be made within six months of the end of the calendar year in which an invoice was issued for the supply made.
2 If the supplier becomes liable for tax, the refund period ends at this time. The application for a tax refund for this period must be submitted with the first VAT return.
132 Amended by No I of the O of 15 Aug. 2018, in force since 1 Jan. 2019 (AS 2018 3143).
(Art. 107 para. 1 let. b VAT Act)
1 The application for a tax refund must be addressed to the FTA with the suppliers' original invoices or with the FOCBS' assessment advice. The original invoices must meet the requirements under Article 26 paragraph 2 VAT Act and be in the name of the applicant.
2 The FTA's form must be used for the application.
3 The applicant must appoint a representative with domicile or with a place of business on Swiss territory.
4 The tax displayed on cash receipts may not be refunded.
5 The FTA may demand further details and documentation.
(Art. 107 para. 1 let.. b VAT Act)
If the tax refund is paid out later than 180 days after receipt of the complete application by the FTA, refund interest set by the FDF is paid for the period from the 181st day until payment, provided the relevant state grants reciprocal rights.
133 Amended by No I of the O of 12 Oct. 2011, in force since 1 Jan. 2012 (AS 2011 4739).
(Art. 109 VAT Act)
The Value Added Tax Consultative Commission (Consultative Commission) is an extra-parliamentary commission under Article 57a of the Government and Administrative Organisation Act of 21 March 1997135.
134 Amended by No I of the O of 12 Oct. 2011, in force since 1 Jan. 2012 (AS 2011 4739).
(Art. 109 VAT Act)
The Consultative Commission comprises fourteen permanent members.
136 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 109 VAT Act)
1 The Consultative Commission meets as necessary. Meetings are convened by the chairperson.
1bis The FTA attends the meetings of the Consultative Commissions in an advisory capacity.137
2 The FTA performs the administrative secretarial work and takes the minutes; the minutes shall include the recommendations of the Consultative Commissions and any majority and minority opinions.138
137 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
138 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 109 VAT Act)
The Consultative Commission submits its comments and recommendations to the FDF. It may disclose any majority and minority opinions.
139 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 109 VAT Act)
1 The Consultative Commission has no power of decision.
2 The decision to establish practice lies with the FTA.140
140 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 109 VAT Act)
1 The discussions and the documents laid before or drawn up by the Consultative Commission are confidential. This does not include drafts of established practice by the FTA; these are published electronically on the FTA website142 at the same time that the invitation to the meeting of the Consultative Commission at which they are expected to be discussed is sent.
2 With the consent of the FTA, the Consultative Commission may provide the public with information about its business.
141 Amended by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
142 www.estv.admin.ch > Mehrwertsteuer > Fachinformationen > Konsultativgremium.
(Art. 15 para. 4 VAT Act)
The assignee is liable only for the VAT on receivables which it acquires under a global assignment concluded after 1 January 2010.
(Art. 32 VAT Act)
The provisions concerning subsequent input tax deduction do not apply to:
144 Amended by No I of the O of 18 June 2010, in force since 1 Jan. 2010 (AS 2010 2833).
(Art. 37 and 114 VAT Act)
1 When the VAT Act comes into force, the notice periods under Article 37 paragraph 4 VAT Act for changing from the effective reporting method to the net tax rate method and vice versa begin to run again.
2 When the VAT Act comes into force, the notice periods under Article 98 paragraph 2 for changing from the effective reporting method to the flat tax rate method and vices versa begin to run again.
3 Where Article 114 paragraph 2 VAT Act provides for a notice period of 90 days, this notice period takes precedence over the 60-day notice period under Articles 79, 81 and 98 of this Ordinance.146
146 Amended by No I of the O of 30 Oct. 2013, in force since 1 Jan. 2014 (AS 2013 3839).
(Art. 10 para. 1 let. a VAT Act)
In the case of foreign businesses without a permanent establishment on Swiss territory that have made taxable supplies on Swiss territory in the twelve months before this Ordinance comes into force, the exemption from tax liability under Article 9a terminates when this Ordinance comes into force, provided in these twelve months they have reached the turnover threshold under Article 10 paragraph 2 letter a or c VAT Act for supplies on Swiss territory and abroad that are not exempt from the tax without credit and it must be assumed that they will also provide taxable supplies on Swiss territory in the twelve months following this Ordinance coming into force. If the supplies were not made for the entire twelve months before this Ordinance comes into force, the turnover must be extrapolated to a full year.
147 Inserted by No I of the O of 18 Oct. 2017, in force since 1 Jan. 2018 (AS 2017 6307).
(Art. 7 para. 3 let. b VAT Act)
Where goods supplied from abroad onto Swiss territory are exempt from import tax because of the negligible amount of tax, the supplier becomes liable for tax when the Amendment of 15 August 2018 comes into force if it achieved a turnover of 100 000 francs or more from supplying such goods in the previous twelve months and it must be assumed that it will continue to make such supplies in the twelve months following the amendment coming into force.
148 Inserted by No I of the O of 15 Aug. 2018, in force since 1 Jan. 2019 (AS 2018 3143).
1 This Ordinance, with the exception of Article 76, comes into force on 1 January 2010.
2 Article 76 comes into force at a later date.