Federal Act on Value Added Tax

¹Any 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 its re­gistered of­fice, dom­i­cile or per­man­ent es­tab­lish­ment on Swiss ter­rit­ory.¹

^1bisA per­son car­ries on a busi­ness if he:

a.

in­de­pend­ently per­forms 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.

acts ex­tern­ally un­der his own name.²

^1terThe pur­chase, hold­ing and sale of in­terests un­der Art­icle 29 para­graphs 2 and 3 qual­i­fies as a busi­ness activ­ity.³

²Ex­empt 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.

car­ries on a busi­ness based abroad that ex­clus­ively makes one or more of the fol­low­ing types of sup­plies on Swiss ter­rit­ory ir­re­spect­ive of turnover:

1.

sup­plies ex­empt from the tax,

2.

ser­vices whose place of sup­ply in terms of Art­icle 8 para­graph 1 is loc­ated on Swiss ter­rit­ory; not ex­empt from tax li­ab­il­ity is, however, any per­son who sup­plies tele­com­mu­nic­a­tion or elec­tron­ic ser­vices to re­cip­i­ents who are not li­able to the tax,

3.

sup­plies of elec­tri­city in cables, gas via the nat­ur­al gas dis­tri­bu­tion net­work and dis­trict heat­ing to per­sons li­able to the tax on Swiss ter­rit­ory;

c.

as a non-profit, vol­un­tar­ily-run sport­ing or cul­tur­al as­so­ci­ation or as a char­it­able or­gan­isa­tion gen­er­ates on Swiss ter­rit­ory and abroad with­in one year a turnover from sup­plies of less than 150,000 francs that are not ex­empt from the tax without cred­it un­der Art­icle 21 para­graph 2.⁴

^2bisThe turnover is cal­cu­lated on the basis of the agreed con­sid­er­a­tions without the tax.⁵

³The place of busi­ness on Swiss ter­rit­ory and all do­mest­ic per­man­ent es­tab­lish­ments to­geth­er rep­res­ent a single tax­able per­son.