Ordinance on Value Added Tax

(Art. 37 para. 1-4 VAT Act)

¹The FTA shall make a pro­ced­ure for the ap­prox­im­ate com­pens­a­tion of the in­put taxes in­curred avail­able to tax­able per­sons re­port­ing us­ing the net tax rate meth­od for:

a.

sup­plies of goods abroad, if the goods are self-man­u­fac­tured or pur­chased with VAT be­ing charged;

b.

sup­plies to be­ne­fi­ciar­ies un­der Art­icle 2 of the Host State Act of 22 June 2007¹ (HSA), provided the place of sup­ply lies on Swiss ter­rit­ory and for sup­plies of goods that the goods are self-man­u­fac­tured or pur­chased with VAT be­ing charged.

²Tax­able per­sons re­port­ing us­ing the net tax rate meth­od who pur­chase in­di­vidu­al­is­able move­able goods without openly trans­ferred tax may use the pro­ced­ure made avail­able by the FTA to com­pensate the no­tion­al in­put tax. The pro­ced­ure does not ap­ply to used auto­mo­biles with an over­all weight not ex­ceed­ing 3,500 kg or to goods:

a.

that the tax­able per­son has ac­cep­ted un­der the no­ti­fic­a­tion pro­ced­ure from a per­son re­port­ing us­ing the ef­fect­ive meth­od;

b.

that the tax­able per­son knows or should have known were im­por­ted ex­empt from the tax;

c.

that the tax­able per­son ac­quired ex­empt from the tax on Swiss ter­rit­ory; or

d.

that the tax­able per­son ac­cep­ted as part of a claim set­tle­ment, provided the pay­ments made ex­ceed the ac­tu­al value of the good at the time of ac­cept­ance.²

^2bisThe pro­ced­ure un­der para­graph 2 ap­plies in an ana­log­ous man­ner when col­lect­ors' items (Art. 48a) are sold.³

³For busi­nesses and events un­der Art­icle 55 para­graph 3, the FTA provides for a flat rate ar­range­ment for the ap­prox­im­ate di­vi­sion of the turnovers between the two net tax rates.