Federal Act
on Value Added Tax
(Value Added Tax Act, VAT Act)

¹ If a tax­able per­son does not gen­er­ate more than 5,005,000 francs turnover from tax­able sup­plies an­nu­ally and in the same peri­od does not have to pay more than 103,000 francs in tax, cal­cu­lated at the net tax rate that ap­plies to him, he may re­port un­der the net tax rate meth­od.⁶⁹

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.⁷⁰

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, he may not change to the net tax rate meth­od for at least three years. Changes are pos­sible for the be­gin­ning of a tax peri­od.

⁵ Pub­lic au­thor­it­ies and re­lated in­sti­tu­tions, in par­tic­u­lar private hos­pit­als and schools or li­censed trans­port un­der­tak­ings and as­so­ci­ations and found­a­tions may re­port us­ing the flat tax rate meth­od. The Fed­er­al Coun­cil shall reg­u­late the de­tails.