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

¹ The FTA may abate bind­ingly as­sessed taxes in whole or in part if the tax­able per­son:

a.

has for an ex­cus­able reas­on not in­voiced and col­lec­ted the tax, a ret­ro­act­ive trans­fer is not pos­sible or reas­on­able and pay­ment of the tax would res­ult in ser­i­ous hard­ship;

b.

owes the tax simply as a res­ult of not ob­serving form­al reg­u­la­tions or of pro­cessing er­rors and it is ob­vi­ous or the tax­able per­son proves that there is no loss of tax for the Con­fed­er­a­tion; or

c.

for an ex­cus­able reas­on could not ful­fil his as­sess­ment ob­lig­a­tions, but can prove or show cred­ibly in ret­ro­spect that the as­sess­ment ac­cord­ing to its best judge­ment un­der­taken by the FTA is too high; in this case tax abate­ment is pos­sible only up to the amount over-as­sessed.

² The FTA may also con­sent to a tax abate­ment or waive se­cur­ity for its claim in com­pos­i­tion pro­ceed­ings.

³ The re­quest for abate­ment must be jus­ti­fied in writ­ing and be sub­mit­ted to the FTA to­geth­er with the ne­ces­sary evid­ence. There is no right of ob­jec­tion to the rul­ing of the FTA. An ap­peal may be made to the Fed­er­al Ad­min­is­trat­ive Court.

⁴ The sub­mis­sion of a re­quest for a tax abate­ment does not lead to the sus­pen­sion of en­force­ment pro­ceed­ings for leg­ally as­sessed taxes.

⁵ The tax abate­ment pro­ced­ure is free of cost. However, costs may be im­posed in full or in part on the per­son sub­mit­ting the re­quest if he has sub­mit­ted an ob­vi­ously un­jus­ti­fied re­quest.

⁶ …¹⁵¹