The Swiss VAT Law - PwC

1 The Swiss VAT Law The current law as of Swiss VAT LawThe current law as of Dear Client, dear readerOn 1 January 2018, the regulations of the partially revised Swiss VAT law came into force. At the same time, the Swiss VAT rates have fallen for the first time in have taken this opportunity surrounding these changes to publish a current version of our VAT brochure. It is a handy edition of the relevant laws and ordinances. In addition, the preface contains a short and concise description of the function of VAT. If you have further questions, please do not hesitate to contact our 2018 PricewaterhouseCoopers Merz Dr. Niklaus HonauerPartner PartnerIndex PageFederal Act on Value Added Tax (Value Added Tax Act, VAT Act)Title 1: General ProvisionsArt.

2 1 Subject and principles 1 Art. 2 Relationship to cantonal law 2 Art. 3 Definitions 2 Art. 4 Samnaun und Sampuoir 3 Art. 5 Indexation 4 Art. 6 Passing on of the tax 4 Art. 7 Place of supply of goods 4 Art. 8 Place of supply of a service 4 Art. 9 Avoidance of distortion of competition 5 Title 2: Domestic TaxChapter 1: Taxable PersonArt. 10 Principle 6 Art. 11 Waiver of exemption from tax liability 7 Art. 12 Public authorities 7 Art. 13 Group taxation 7 Art. 14 Commencement and termination of tax liability and of exemption from tax liability 8 Art. 15 Joint liability 8 Art. 16 Succession to tax liability 9 Art. 17 Tax substitution 9 Chapter 2: Object of TaxationArt. 18 Principle 10 Art. 19 Plurality of supplies 10 Art.

3 20 Attribution of supplies 11 Art. 21 Supplies exempt from the tax without credit 11 Art. 22 Option for the taxation of supplies exempt from the tax without 16 Art. 23 Supplies exempt from the tax 17 Chapter 3: Assessment Basis and Tax RatesArt. 24 Assessment basis 19 Art. 24a Margin taxation 19 Art. 25 Tax rates 20 IChapter 4: Invoicing and VAT DetailsArt. 26 Invoice 21 Art. 27 Incorrect or unauthorised VAT details 22 Chapter 5: Input Tax DeductionArt. 28 Principle 22 Art. 28a Deduction of notional input tax 23 Art. 29 Exclusion of the right to input tax deduction 23 Art. 30 Mixed use 24 Art. 31 Own use 24 Art. 32 Subsequent input tax deduction 25 Art. 33 Reduction of the input tax deduction 25 Chapter 6: Calculation, Constitution and Prescription of the Tax ClaimSection 1: Time of AssessmentArt.

4 34 Tax period 25 Art. 35 Reporting period 26 Section 3: Amount of the Tax Claim and Notification ProcedureArt. 36 Effective reporting method 26 Art. 37 Reporting using the net tax rate and the flat tax rate methods 26 Art. 38 Notification procedure 27 Section 3: Constitution, Modification and Prescription of the Tax ClaimArt. 39 form of reporting 27 Art. 40 Constitution of the tax claim 28 Art. 41 Subsequent modification of the turnover tax liability and of the input tax deduction 28 Art. 42 Prescription of the right to establish the tax 28 Art. 43 Validity of the tax claim 29 Art. 44 Assignment and pledge of the tax claim 29 Title 3: Acquisition TaxArt. 45 Liability for acquisition tax 29 Art. 45a Supplies not subject to acquisition tax 30 Art.

5 46 Tax assessment and tax rates 30 Art. 47 Tax and reporting period 30 Art. 48 Constitution and prescription of the right to establish the acquisition tax debt 30 Art. 49 Joint and several liability, tax succession and substitution 31 IIPageTitle 4: Import taxArt. 50 Applicable law 31 Art. 51 Tax liability 31 Art. 52 Taxable object 31 Art. 53 Tax exempt imports 32 Art. 54 Assessment basis 33 Art. 55 Tax rates 34 Art. 56 Incurrence, prescription and payment of the import tax debt 35 Art. 57 Interest on late payment 35 Art. 58 Exceptions to liability for interest on late payment 35 Art. 59 Right to refund of the tax and prescription 36 Art. 60 Refund because of re-export 37 Art. 61 Refund interest 37 Art. 62 Competence and procedure 38 Art.

6 63 Transfer of the tax payment 38 Art. 64 Tax remission 38 Title 5: Procedural Law for Domestic and Acquisition TaxChapter 1: General Procedural ProvisionsArt. 65 39 Chapter 2: Rights and Obligations of the Taxable PersonArt. 66 registration and de- registration as a taxable person 39 Art. 67 Tax representation 40 Art. 68 Obligation to provide information 40 Art. 69 Right to receive information 40 Art. 70 Accounting and retention of records 40 Art. 71 Filing of the return 41 Art. 72 Correction of errors in the return 41 Chapter 3: Obligation of Third Parties to provide InformationArt. 73 41 Chapter 4: Rights and Obligations of the AuthoritiesSection 1: Confidentiality and Administrative Assistance3 Art. 74 Confidentiality 42 Art.

7 75 Administrative assistance 42 Art. 75a International administrative assistance 43 IIIPageSection 2: Data ProtectionArt. 76 Processing of data 44 Art. 76a Information system 44 Art. 76b Disclosure of personal data 45 Art. 76c Safeguarding data and documents 45 Art. 76d Implementing provisions 46 Section 3: Securing the Correct Tax PaymentArt. 77 Review 46 Art. 78 Audit 46 Art. 79 Assessment according to best judgement 47 Art. 80 Simplifications 47 Chapter 5: Ruling and Appeal ProceduresArt. 81 Principles 47 Art. 82 FTA rulings 47 Art. 83 Objection 48 Art. 84 Costs and compensation 48 Art. 85 Review, explanation and correction 49 Chapter 6: CollectionArt. 86 Payment of the tax 49 Art. 87 Interest on late payment 50 Art.

8 88 Refunds to the taxable person 50 Art. 89 Debt collection 50 Art. 90 Payment facilities 51 Art. 91 Prescription of the right to collect tax 51 Art. 92 Tax remission 51 Chapter 7: Security for the TaxArt. 93 Security 52 Art. 94 Other collateral measures 53 Art. 95 Deletion from the Commercial Register 53 Title 6: Criminal ProvisionsArt. 96 Tax evasion 54 Art. 97 Determination of the penalty and aggravated tax evasion 54 Art. 98 Infringement of procedural obligations 55 Art. 99 Receiving untaxed goods 55 Art. 100 Violations in business operations 56 Art. 101 Concurrent offences 56 IVPageArt. 102 Self-reporting 56 Art. 103 Prosecution 57 Art. 104 Procedural guarantees 57 Art. 105 Prescription of the right to prosecute 57 Art.

9 106 Collection of fines and costs and prescription 58 Title 7: Final ProvisionsChapter 1: Implementing ProvisionsArt. 107 Federal Council 58 Art. 108 Federal Department of Finance 59 Art. 109 Consultative committee 59 Chapter 2: Repeal and Amendment of Current LawArt. 110 Repeal of current law 59 Art. 111 Amendment of current law 60 Chapter 3: Transitional ProvisionsArt. 112 Application of the previous law 60 Art. 113 Application of the new law 60 Art. 114 Election options 60 Art. 115 Change of the tax rates 61 Art. 115a Transitional provision to the Amendment of 30 September 2016 61 Chapter 4: Referendum and CommencementArt. 116 61 VPageVIOrdinance on Value Added Tax (Value Added Tax Ordinance, VAT Ordinance)Title 1: General ProvisionsArt.

10 1 Swiss territory 62 Art. 2 Pledge and special terms of sale 62 Art. 3 Declaration of subjection on import of goods 63 Art. 4 Supply of goods from abroad onto Swiss territory from a warehouse on Swiss territory 63 Art. 5 Permanent establishment 63 Art. 5a Shipping traffic on Lake Constance, the Untersee and the Rhine to the Swiss border below Basel 64 Art. 6 Transport services 64 Art. 6a Place of supply for restaurant, cultural and similar supplies while transporting passengers in border areas 642. Title: Domestic TaxChapter 1: Taxable PersonSection 1: Business Activity and Turnover ThresholdArt. 7 Permanent establishments of foreign businesses 64 Art. 8 65 Art. 9 Exemption and termination of the exemption from tax liability for Swiss businesses 65 Art.