Federal Act on Value Added Tax

¹If 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.

²Own use oc­curs in par­tic­u­lar where the tax­able per­son with­draws goods or ser­vices per­man­ently or tem­por­ar­ily from his busi­ness, provided on pro­cure­ment or con­tri­bu­tion of the whole or of its com­pon­ents he has made an in­put tax de­duc­tion or he has pro­cured the goods or ser­vices un­der the no­ti­fic­a­tion pro­ced­ure ac­cord­ing to Art­icle 38 which:

a.

he uses out­side his busi­ness activ­ity, in par­tic­u­lar for private pur­poses;

b.

he uses for a busi­ness activ­ity which does not en­title him to make the in­put tax de­duc­tion un­der Art­icle 29 para­graph 1;

c.

he hands over without con­sid­er­a­tion, without there be­ing a busi­ness reas­on; in the case of gifts of up to 500 francs per per­son and year and of ad­vert­ising gifts and samples with the aim of real­ising turnovers tax­able or ex­empt from the tax, a busi­ness reas­on will be pre­sumed auto­mat­ic­ally;

d.

on the ces­sa­tion of tax li­ab­il­ity are still sub­ject to his right of dis­pos­al.

³If in the peri­od between the re­ceipt of the sup­ply and the non-ful­fil­ment of the con­di­tions for the in­put tax de­duc­tion, the good or ser­vice was put to use, the in­put tax de­duc­tion must be cor­rec­ted in the amount of 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.

⁴If a good is used only tem­por­ar­ily out­side the busi­ness activ­ity or for a busi­ness activ­ity not en­titling the tax­able per­son to make an in­put tax de­duc­tion, the in­put tax de­duc­tion must be cor­rec­ted based on the amount of the tax that would be due on the rent that an in­de­pend­ent third per­son would charge there­for.