Federal Act on Value Added Tax

¹There 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.

^1bisAn in­put tax de­duc­tion for sup­plies made abroad is pos­sible to the same ex­tent as if they had been made on Swiss ter­rit­ory and tax­a­tion had been op­ted for un­der Art­icle 22.¹

²Not­with­stand­ing 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 1990² on Dir­ect Fed­er­al Tax­a­tion (DFTA).

³In­terests are par­ti­cip­a­tions in the cap­it­al of oth­er busi­nesses that are held with the in­tent of long-term in­vest­ment and con­fer sig­ni­fic­ant in­flu­ence. Par­ti­cip­a­tions of at least 10 per cent in the cap­it­al are deemed to be an in­terest.

⁴In or­der to as­cer­tain the de­duct­ible in­put tax, hold­ing com­pan­ies may base their cal­cu­la­tion on the busi­ness activ­ity of the busi­nesses held by them that gives rise to the right to make an in­put tax de­duc­tion.³