Value Added Tax Act (VAT Act)
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
Chapter 1 Taxable Person
Art. 10 Principle
1 Any person, irrespective of legal form, objects and intention to make a profit, is liable to the tax if that person carries on a business and: a. makes supplies on Swiss territory through that business; or b. has their registered office, domicile or permanent establishment on Swiss territory. 1bis A person carries on a business if they: a. independently perform a professional or commercial activity with the aim of sustainably earning income from supplies, irrespective of the amount of the inflow of funds that do not qualify as a consideration under Article 18 paragraph 2; and b. act externally under their own name. 1ter The purchase, holding and sale of interests under Article 29 paragraphs 2 and 3 qualifies as a business activity. 2 Exempt from tax liability under paragraph 1 is any person who: a. within one year generates on Swiss territory and abroad turnover from supplies of less than 100,000 francs that are not exempt from the tax without credit under Article 21 paragraph 2; b.
Para. 1 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1bis let. b — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1ter — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 2 let. b — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 2 let. b let. 1bis
Art. 11 Waiver of exemption from tax liability
1 Any person who carries on a business and is exempt from tax liability under Article 10 paragraph 2 or 12 paragraph 3 has the right to waive exemption from tax liability. 2 Exemption from tax liability must be waived for at least one tax period.
Art. 12 Public authorities
1 Among the public authorities, taxable persons are the autonomous agencies of the Confederation, cantons and communes and the other public law institutions. 2 Agencies may combine as a single taxable person. The combination may be elected for at the beginning of any tax period. It must be retained for at least one tax period. 3 A taxable person that is part of a public authority is exempt from tax liability as long as less than 100,000 francs turnover per year derive from taxable supplies to persons other than public authorities. The turnover is measured by the agreed considerations without the tax. 4 The Federal Council determines what supplies made by public authorities qualify as business activity and are therefore taxable.
Para. 3 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 13 Group taxation
1 Legal entities with their registered office, domicile or a permanent establishment in Switzerland which are closely associated with one another under the common management of a single legal entity may on application combine as a single taxable person (a VAT group). The group may also include legal entities which do not carry on a business, and individuals. 2 The decision to combine as a VAT group may be made for the beginning of any tax period. Termination of a VAT group is possible at the end of any tax period.
Para. 1 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 14 Commencement and termination of tax liability and of exemptionfrom tax liability
1 Tax liability commences: for businesses with registered office, domicile or permanent establishment on Swiss territory: with the commencement of the business activity; b. for all other businesses: on making a supply for the first time on Swiss territory. 2 Tax liability ends: a. for businesses with registered office, domicile or permanent establishment on Swiss territory: 1. on cessation of the business activity, 2. on liquidation of assets: with the conclusion of the liquidation procedure; b. for all other businesses: at the end of the calendar year in which a supply was made on Swiss territory for the last time. 3 Exemption from tax liability ends as soon as the total of the turnovers generated in the last financial year reaches the threshold in Article 10 paragraph 2 letters a or c or 12 paragraph 3, or it is foreseeable that the threshold will be exceeded within 12 months of commencing or extending the business activity. 4 Waiver of the exemption from tax liability may be declare
Para. 1 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 2 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 15 Joint liability
1 Jointly and severally liable with the taxable person are: a. partners in a simple partnership, a general or limited partnership within the scope of their civil law liability; b. persons who voluntarily conduct or arrange an auction; c. any person or unincorporated entity, with the exception of pension schemes, that is a member of a VAT group (Art. 13) for all taxes payable by the group; if a person or unincorporated entity withdraws from the group, they are liable only for the tax claims that have arisen from their own business activity; d. on transfer of a business: the previous tax debtor for three years after the announcement or reporting of the transfer for tax claims that arose before the transfer; e. on termination of the tax liability of a wound-up legal entity, trading company or partnership without legal personality: the persons entrusted with the liquidation up to the amount of the liquidation surplus; f. for the tax of a legal person that relocates its domicile abroad: the
Para. 1 let. c — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1 let. g — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 3 — SR 313.0 Para. 4 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 4bis — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 16 Succession to tax liability
1 The rights and obligations of a deceased taxable individual pass to that individual’s heirs. The heirs are jointly and severally liable for the taxes owed by the deceased up to the amount of their share of the estate, including amounts received in advance. 2 A person who takes over a business acquires the tax rights and obligations of their legal predecessor.
Art. 17 Tax substitution
Satisfaction of the tax liability of foreign trading companies and foreign partnerships without legal personality is also the responsibility of their partners.
Chapter 2 Object of Taxation
Art. 18 Principle
1 Domestic tax shall be levied on supplies made by taxable persons on Swiss territory for consideration; they are taxable unless this Act provides otherwise. 2 Due to the absence of any supply, the following flows of funds in particular do not qualify as a consideration: a. subsidies and other public law contributions, even if they are paid on the basis of a public service agreement or a programme agreement pursuant to Article 46 paragraph 2 of the Federal Constitution; b. funds that tourist offices receive exclusively from public law tourist charges and which they employ on behalf of public authorities for the public good; c. contributions from cantonal water, sewage or waste funds to waste disposal institutions or waterworks; d. donations; e. contributions to businesses, in particular interest free loans, recapitalisation payments and written-off debts; f. dividends and other profit shares; g. contractually or legally regulated cost sharing payments that are paid by an organisational
Para. 3 — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). The correction by the Federal Assembly Drafting Committee, published on 27 Feb. 2025, relates to the Italian text only (AS 2025 135).
Art. 19 Plurality of supplies
1 Mutually independent supplies are treated separately. 2 Two or more mutually independent supplies that are aggregated into one unit or are offered as a combination of supplies may be treated as a unit according to the predominant supply if they are made against an aggregate consideration and the predominant supply represents by value at least 70 per cent of the aggregate consideration (combination). 3 Supplies that are economically closely related and interact with one another in such a way that they must be regarded as an indivisible whole qualify as a unitary economic transaction and must be treated according to the character of the aggregate supply. 4 Ancillary supplies, in particular packaging, are treated for tax purposes in the same way as the main supply.
Art. 20 Attribution of supplies
1 A supply is deemed to be made by the person who appears to the outside world to be the supplier. 2 If a person acts in the name of and for account of another person, the supply is deemed to be made by the person represented if the representative: a. can prove that they are acting as an agent and can clearly identify the person represented; and b. the existence of an agency relationship is expressly notified to the recipient of the supply or is obvious in the circumstances. 3 If paragraph 1 applies in a triangular relationship, the supply relationship between the person appearing to the outside world and the person actually making the supply is qualified in the same way as the supply relationship between the person acting in relation to the outside world and the person receiving the supply.
Art. 20a Attribution of supplies in the case of supplies of goods via electronic platforms
1 Persons who facilitate a supply of goods in accordance with Article 3 letter d number 1 to be made with the aid of a digital platform by bringing sellers together with purchasers to conclude a contract on the platform shall be deemed to be a supplier in relation to the purchaser. In this case, there is a supply both between this person and the seller and between this person and the purchaser. 2 Persons who fulfil one or more of the following conditions shall not be deemed to be a supplier: a. They are neither directly nor indirectly involved in the ordering process. b. They do not generate turnover directly related to the business. c. They only carry out the payment processing in connection with the supply. d. They only provide space for advertisements. e. They only provide advertising services. f. They only redirect or forward purchasers to other electronic platforms.
Art. 20a — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 21 Supplies exempt from the tax without credit
1 A supply that is exempt from the tax without credit and for which taxation under Article 22 is not opted for is not taxable. 2 Exempt from the tax without credit are: 1. the transport of letters that is included in the reserved services under Article 18 of the Postal Services Act of 17 December 2010; 2. hospital treatment and medical treatment in human medicine hospitals, including closely related supplies made by hospitals, medical treatment and diagnostic centres, out-patient facilities and day hospitals. The dispensing of self-manufactured or bought-in artificial limbs and orthopaedic equipment is deemed to be a taxable supply of goods; 3. human medical treatment provided by doctors, dentists, psychotherapists, chiropractors, physiotherapists, naturopaths, midwives, nursing professionals or members of similar medical and nursing professions, provided the suppliers possess a licence to practise their profession: the Federal Council regulates the details. The dispensing of self-manu
Para. 2 let. 1 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 2 let. 1 — SR 783.0 Para. 2 let. 2 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 2 let. 3bis — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 2 let. 8 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Pa
Art. 22 Option for the taxation of supplies exempt from the tax without credit
1 The taxable person may, subject to paragraph 2, tax any supply exempt from the tax without credit (option), provided the tax is clearly detailed or a declaration is made on the tax return. 2 The option is excluded for: a. supplies under Article 21 paragraph 2 numbers 18, 19 and 23; b. supplies under Article 21 paragraph 2 numbers 20 and 21 if the good is used or is intended to be used by the recipient exclusively for private residential purposes.
Para. 1 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 2 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 23 Supplies exempt from the tax
1 If a supply is exempt from the tax under this article, domestic tax is not payable on the supply. 2 Exempt from the tax are: 1. the supply of goods, unless provided for use or exploitation, that are transported or dispatched directly abroad; 2. the provision for use or exploitation, in particular the leasing or chartering of goods, provided the goods are predominantly used abroad by the recipient of the supply itself; 3. the supply of goods that were demonstrably subject to customs control on Swiss territory in connection with a transit procedure (Art. 49 CustA), a customs warehousing procedure (Art. 50–57 CustA), a temporary admission procedure (Art. 58 CustA), or inward processing procedure (Art. 59 CustA), provided the procedure was concluded in the proper manner or with subsequent approval from the Federal Office for Customs and Border Security (FOCBS); 3bis. the supply of goods which because of storage in a bonded warehouse (Art. 62–66 CustA) were demonstrably subject to customs
Para. 2 let. 2 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 2 let. 3 — Amended by No I 18 of the O of 12 June 2020 on the Amendment of Legislation as a consequence of the Change to the Name of the Federal Customs Administration as part of its further Development, in force since 1 Jan. 2022 (AS 2020 2743). Para. 2 let. 3 — SR 631.0 Para. 2 let. 3bis — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3
Chapter 3 Assessment Basis and Tax Rates
Art. 24 Assessment basis
1 The tax is calculated on the consideration actually received. The consideration includes in particular the reimbursement of all costs, even if they are invoiced separately, and the public law charges payable by the taxable person. Paragraphs 2 and 6 remain reserved. 2 For supplies to closely related persons (Art. 3 let. h), the consideration is deemed to be the amount that would be agreed between independent third parties. 3 For barter transactions, the market value of each supply is deemed to be the consideration for the other supply. 4 For exchange repairs, the consideration covers only the wage for the work carried out. 5 For supplies made in lieu of payment, the consideration is deemed to be the amount which is thereby satisfied. 5bis If a person is deemed to be a supplier in accordance with Article 20a, the consideration for the supply which that person has facilitated shall be equal to the value which they have communicated to the purchaser of the goods. 6 Not included in the a
Para. 5bis — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 24a Margin taxation
1 If the person liable to tax has acquired collectors’ items such as works of art, antiques and suchlike, in order to calculate the tax, they may deduct the purchase price from selling price provided they have not deducted input tax from the purchase price (margin taxation). If the purchase price is higher than the selling price, the loss may be set off, in that the difference is deducted from taxable turnover. 2 If such collectors’ items are imported by the reseller, the import tax paid may be added to the purchase price. 3 A person is deemed to be a reseller if they act for their own account or for the account of another on the basis of a purchase or sales commission agreement. 4 The Federal Council shall determine what is deemed to be a collectors’ item. 5 If two or more collectors’ items are purchased for an overall price, the tax may be calculated on the basis of the total difference between the overall selling price and the overall purchase price. The Federal Council shall regula
Art. 24a — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 25 Tax rates
1 The tax rate is 8.1 per cent (standard rate), subject to paragraphs 2 and 3. 2 The reduced tax rate of 2.6 per cent applies to: a. the supply of the following goods: 1. tap water, 2. foodstuffs under the Foodstuffs Act of 20 June 2014, with the exception of alcoholic beverages, 3. cattle, poultry, fish, 4. grains, 5. seeds, planting roots and bulbs, living plants, cuttings, scions and cut flowers and branches, including those used in arrangements bouquets, wreaths, etc.; if invoiced separately, the supply of these goods is also subject to the reduced tax rate, even if it is made in combination with a supply taxable at the standard rate, 6. animal feed, silage acids, scatterings for animals, 7. fertilisers, pesticides, mulch and other vegetation used as covering material, 8. medication, 9. newspapers, magazines, books and other printed matter without advertising character of the kinds to be stipulated by the Federal Council, 10. products for menstrual hygiene; abis. electronic newspap
Para. 1 — Amended by No I of the O of 9 Dec. 2022 on the Increase in Value Added Tax- Rates to provide Additional OASI Funding, in force since 1 Jan. 2024 (AS 2022 863). Para. 2 — Amended by No I of the O of 9 Dec. 2022 on the Increase in Value Added Tax- Rates to provide Additional OASI Funding, in force since 1 Jan. 2024 (AS 2022 863). Para. 2 let. a let. 2 — Amended by Annex No II 3 of the Foodstuffs Act of 20 June 2014, in force since 1 May 2017 (AS 2017 249; BBl 2011 5571). Para. 2 let. a l
Chapter 4 Invoicing and VAT Details
Art. 26 Invoice
1 The supplier must on request issue the recipient of the supply with an invoice that satisfies the requirements of paragraphs 2 and 3. 2 The invoice must clearly identify the supplier, the recipient and the nature of the supply and as a rule contain the following elements: a. the name and the location of the supplier in the form which the supplier uses in business transactions, a note that they are registered as a taxable person and the number under which they are entered in the Register of Taxable Persons; b. the name and location of the recipient of the supply in the form in which they use in business transactions; c. the date or period of the provision of the supply, in the event that it differs from the invoice date; d. the nature, object and extent of the supply; e. the consideration for the supply; f. the applicable tax rate and the tax amount payable on the consideration; if the consideration includes the tax, details of the applicable tax rate suffice. 3 On invoices issued by
Para. 2 let. a — Amended by Annex No 2 of the FA of 18 June 2010 on the Business Identification Number, in force since 1 Jan. 2011 (AS 2010 4989; BBl 2009 7855).
Art. 27 Incorrect or unauthorised VAT details
1 Persons not entered in the Register of Taxable Persons or who use the notification procedure according to Article 38 may not include VAT details on invoices. 2 Persons who include VAT details on an invoice when not entitled to do so, or who detail too high a tax for a supply, shall owe the tax detailed unless: a. the invoice is corrected in accordance with paragraph 4; or b. they show probable cause that the Confederation has not suffered a loss of tax; tax is not lost if the recipient of the invoice has not made an input tax deduction or if the input tax claimed has been repaid to the Confederation. 3 The legal consequences of paragraph 2 also apply to credit notes, unless the recipient of the credit note contests in writing the tax detailed without authorisation or the excessive tax amount. 4 An invoice may be subsequently corrected within the period permitted by commercial law by a document requiring acknowledgement of receipt, which refers to and revokes the original invoice.
Para. 2 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 3 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Chapter 5 Input Tax Deduction
Art. 28 Principle
1 The taxable person may in the course of their business activity, subject to Articles 29 and 33, deduct the following input taxes: a. the domestic tax invoiced to them; b. the acquisition tax that they have declared (Art. 45–49); c. the import tax paid or payable by them which has been assessed unconditionally or has been assessed conditionally and fallen due as well as the tax declared by them for the import of goods (Art. 52 and 63). 2 If the taxable person has, in the course of a business activity entitling them to make an input tax deduction, procured agricultural, forestry or market garden products, cattle or milk from non-taxable farmers, foresters, gardeners, cattle dealers or milk collectors, they may deduct as input tax 2.6 per cent of the amount invoiced. 3 Deduction of the input tax under paragraph 1 is permissible if the taxable person proves that they have paid the input tax.
Para. 2 — Amended by No I of the O of 9 Dec. 2022 on the Increase in Value Added Tax- Rates to provide Additional OASI Funding, in force since 1 Jan. 2024 (AS 2022 863). Para. 3 — Originally: para. 4. Original version of para. 3 repealed by No I of the FA of 30 Sept. 2016, with effect from 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 28a Deduction of notional input tax
1 The taxable person may deduct notional input tax if: a. they acquire an individualisable moveable good in the course of a business activity entitling them to make an input tax deduction; and b. the VAT on acquisition of the good has not been openly passed on to them. 2 The notional input tax is calculated on the basis of the amount paid by the taxable person. The amount paid is regarded as including the tax at the tax rate applicable at the time of acquisition. 3 No notional input tax may be deducted in respect of goods subject to margin taxation under Article 24a.
Art. 28a — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 29 Exclusion of the right to input tax deduction
1 There is no right to make an input tax deduction on supplies and the import of goods which are used to make supplies that are exempt without credit from the tax and where the option for their taxation has not been exercised. 1bis An input tax deduction for supplies made abroad is permitted to the same extent as if they had been made on Swiss territory and taxation had been opted for under Article 22. 1ter An input tax deduction is permitted for travel services retailed by travel agents and the related services of the travel agents if the services are provided or used abroad. 2 Notwithstanding paragraph 1, there is a right to make an input tax deduction in the course of a business activity entitling the taxable person to make an input tax deduction for the purchase, holding and sale of interests and for reorganisations as defined by Article 19 or 61 of the Federal Act of 14 December 1990 on Direct Federal Taxation (DFTA). 3 Interests are participations in the capital of other business
Para. 1bis — Inserted by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1ter — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 2 — SR 642.11 Para. 4 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 30 Mixed use
1 If the taxable person also uses goods, parts thereof or services outside their business activity, or uses the same within their business activity both for supplies entitling the taxable person to make an input tax deduction and for supplies that are excluded from input tax deduction, the taxable person must correct the input tax deduction in proportion to their use. 2 If such a pre-supply is predominantly used in the course of the business activity involving supplies entitling the taxable person to make an input tax deduction, the input tax may be deducted in full and corrected at the end of the tax period (Art. 31).
Art. 31 Own use
1 If the conditions for input tax deduction are subsequently not fulfilled (own use), the input tax deduction must be corrected at the point in time at which the conditions are no longer fulfilled. The input tax previously deducted, including the parts corrected as a subsequent input tax deduction, must be repaid. 2 Own use occurs in particular where the taxable person withdraws goods or services permanently or temporarily from their business, provided on procurement or contribution of the whole or of its components they have made an input tax deduction or they have procured the goods or services under the notification procedure in accordance with Article 38 which: a. they use outside their business activity, in particular for private purposes; b. they use for a business activity which does not entitle them to make the input tax deduction under Article 29 paragraph 1; c. they hand over without consideration, without there being a business reason; in the case of gifts of up to 500 franc
Art. 32 Subsequent input tax deduction
1 If the conditions for the input tax deduction arise later (subsequent input tax deduction), the input tax deduction may be made in the reporting period in which the conditions arose. The input tax not deducted earlier, including the portion corrected for own use, may be deducted. 2 If the good or the service was put into use in the time between receipt or import of the supply and the occurrence of the conditions for the input tax deduction, the deductible input tax is limited to the fair value of the good or the service. To determine the fair value, the input tax amount is reduced on a straight-line basis for every year that has expired by a fifth for movable goods and for services, and by a twentieth for immovable goods. The accounting treatment is of no significance. The Federal Council may, in justified cases, stipulate departures from the depreciation rules. 3 If a good is used only temporarily outside the business activity or for a business activity not entitling the input tax d
Art. 33 Reduction of the input tax deduction
1 Flows of funds that are not deemed to be consideration (Art. 18 para. 2), do not result in a reduction of the input tax deduction, subject to paragraph 2. 2 The taxable person must reduce their input tax deduction proportionately if they receive money under Article 18 paragraph 2 letters a–c.
Chapter 6 Calculation, Constitution and Prescripti
Section 1 Time of Assessment
Art. 34 Tax period
1 The tax is levied by tax period. 2 The tax period is the calendar year. 3 The FTA shall permit the taxable person on request to use the business year as the tax period.
Para. 3 — Not yet in effect.
Art. 35 Reporting period
1 Within the tax period, the tax shall be reported on a quarterly basis. For reporting using net tax rates (Art. 37 paras. 1 and 2), the tax shall be reported half-yearly. 1bis At the request of the taxable person, the tax shall be reported: a. in the case of a regular input tax surplus: monthly; b. in the case of a turnover not exceeding 5,005,000 francs from taxable supplies each year: annually. 2 On application, the FTA shall permit, in justifiable cases, other reporting periods and shall stipulate the conditions therefor.
Para. 1 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363). Para. 1bis let. b — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 35a Annual reporting
1 The FTA may refuse or revoke authorisation for annual reporting in the case of taxable persons who fail to comply or only partially comply with their reporting and payment obligations. 2 Annual reporting must be used for at least one full tax period. 3 Any person who changes from annual to monthly, quarterly or half-yearly reporting may change back to annual reporting after three tax periods at the earliest. 4 Changes must take effect at the beginning of a tax period.
Art. 35a — Inserted by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Section 2 Amount of the Tax Claim and Notification
Art. 36 Effective reporting method
1 In principle, the effective reporting method must be used. 2 When applying the effective reporting method, the tax claim is calculated as the difference between the domestic tax payable, the acquisition tax (Art. 45) and import tax declared in the transfer procedure (Art. 63) and the input tax credit for the corresponding reporting period.
Art. 37 Reporting using the net tax rate and the flat tax rate methods
1 If a taxable person does not generate more than 5,024,000 francs turnover from taxable supplies annually and in the same period does not have to pay more than 108,000 francs in tax, calculated at the net tax rate that applies to them, they may report under the net tax rate method. 2 When using the net tax rate method, the tax claim is determined by multiplying the sum of the taxable considerations, including tax, generated in the reporting period by the net tax rate approved by the FTA. 3 The net tax rates take into account the input tax amounts usual in the relevant branch of the industry. They are fixed by the FTA after consultation with the industry association concerned. 4 Authorisation to report under the net tax rate method must be requested from the FTA and the method must be used for at least one tax period. If the taxable person elects for the effective reporting method, they may not change to the net tax rate method for at least three years. Changes are possible for the beg
Para. 1 — Amended by No I of the O of 9 Dec. 2022 on the Increase in Value Added Tax- Rates to provide Additional OASI Funding, in force since 1 Jan. 2024 (AS 2022 863). Para. 3 — Second sentence amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).
Art. 38 Notification procedure
1 If the tax calculated at the statutory rate on the sales price exceeds 10,000 francs or if the sale is made to a closely related person, the taxable person must fulfil their reporting and tax payment obligation by notification in the following cases: a. reorganisations in accordance with Articles 19 or 61 DFTA; b. other transfers of all of the assets or part of the assets to another taxable person in the context of an incorporation, liquidation, reorganisation, sale of business or a legal transaction regulated in the Mergers Act of 3 October 2003. 2 The Federal Council may determine other cases in which the notification procedure must be, or may be, used. 3 The notifications must be made in the course of ordinary reporting. 4 By using the notification procedure, the acquirer accepts the seller’s assessment basis and the level of use entitling to an input tax deduction in respect of the assets transferred. 5 If in the cases mentioned in paragraph 1 the notification procedure was not a
Para. 1 let. a — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1 let. a — SR 642.11 Para. 1 let. b — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615). Para. 1 let. b — SR 221.301
Section 3 Constitution, Modification and Prescript
Art. 39 Form of reporting
1 The tax shall be reported based on the agreed consideration. 2 The FTA shall allow taxable persons on application to report on the basis of the consideration collected. 3 The form of reporting chosen must be retained for at least one tax period. 4 The FTA may require taxable persons to report on the basis of the consideration collected if: a. they receive, to a significant extent, considerations before they make the supply or issue an invoice; or b. there is reasonable suspicion that a taxable person is abusing the procedure of reporting based on agreed considerations to obtain an unlawful benefit for themselves or a third party.
Art. 40 Constitution of the tax claim
1 If reporting is on the basis of agreed considerations, the right to make an input tax deduction is constituted at the time of receipt of the invoice. The turnover tax debt is incurred: a. on invoicing; b. with the issue of a partial invoice or with the collection of the partial payment, if the supplies give rise to a series of partial invoices or partial payments; c. with the collection of the consideration on advance payments for supplies not exempt from the tax and for supplies without invoice. 2 If reporting is based on collected considerations, the right to make an input tax deduction is constituted at the time of payment. The turnover tax liability is incurred on collection of the consideration. 3 The right to make an input tax deduction based on the acquisition tax is constituted at the time of reporting the acquisition tax (Art. 48). 4 The right to make an input tax deduction based on the import tax is constituted at the end of the reporting period in which the tax was establi
Para. 3 — Amended by No I of the FA of 16 June 2023, in force since 1 Jan. 2025 (AS 2024 438; BBl 2021 2363).
Art. 41 Subsequent modification of the turnover tax liability and of the input tax deduction
1 If the recipient of the supply corrects paid or agreed considerations, the turnover tax liability must be adjusted at the time when the correction is booked or the corrected consideration is collected. 2 If the consideration expended by the taxable person is corrected, the turnover tax liability must be adjusted at the time when the correction is booked or the corrected consideration is paid.
Art. 42 Prescription of the right to establish the tax
1 The right to establish a tax claim prescribes five years from the end of the tax period in which the tax claim was established. 2 This prescriptive period is interrupted by a written declaration requiring confirmation of receipt that is aimed at establishing or correcting the tax claim, a ruling, a decision on opposition, or a judgment. A corresponding interruption of the prescriptive period may also be achieved by the announcement of an audit under Article 78 paragraph 3 or the commencement of an unannounced audit. 3 If the prescriptive period is interrupted by the FTA or an appeal body, the prescriptive period begins to run again. It then runs for two years. 4 The prescriptive period shall be suspended for as long as proceedings under this Act relating to tax offences are being conducted in respect of the relevant tax period and the person liable for payment has been notified (Art. 104 para. 4). 5 Interruption and suspension are effective towards all persons liable for payment. 6 T
Art. 43 Validity of the tax claim
1 The tax claim is made legally binding by: a. a ruling that has become legally binding, a decision on opposition that has become legally binding or a judgment that has become legally binding; b. the written recognition or payment without reservation of an assessment notice by the taxable person; c. the prescription of the right to establish the tax. 2 Until they are legally binding, the returns submitted and paid may be corrected.
Art. 44 Assignment and pledge of the tax claim
1 The taxable person may assign and pledge their tax claim in accordance with the provisions of private law. 2 The rights of the FTA, namely to object and to take measures to secure the tax, are not affected by the assignment or pledge.
Para. 2 — Amended by No I of the FA of 30 Sept. 2016, in force since 1 Jan. 2018 (AS 2017 3575; BBl 2015 2615).