Ordinance on Value Added Tax

(Art. 10 para. 2 let. a and c and 14 para. 1 let. a and 3 VAT Act)

¹Busi­nesses with place of busi­ness, dom­i­cile or per­man­ent es­tab­lish­ment on Swiss ter­rit­ory that com­mence their activ­ity or ex­tend their activ­ity by tak­ing over a busi­ness or open­ing a new busi­ness di­vi­sion are ex­empt from tax li­ab­il­ity if at the time, based on the cir­cum­stances, it must be as­sumed that the turnover threshold re­ferred to in Art­icle 10 para­graph 2 let­ter a or c VAT Act for sup­plies made on Swiss ter­rit­ory and abroad will not be achieved in the fol­low­ing twelve months. If it is not yet pos­sible at the time to as­sess wheth­er the turnover threshold will be achieved, a re-as­sess­ment must be car­ried out with­in three months at the latest.

²Where it must be as­sumed based on the re-as­sess­ment that the turnover threshold will be achieved, the ex­emp­tion from tax li­ab­il­ity ends either:

a.

on the date of com­mence­ment or ex­pan­sion of the activ­ity; or

b.

on the date of the re-as­sess­ment, but at the latest at the be­gin­ning of the fourth month.

³For busi­nesses pre­vi­ously ex­empt from tax li­ab­il­ity, the ex­emp­tion from tax li­ab­il­ity ends with the busi­ness year in which the rel­ev­ant turnover threshold is achieved. If the activ­ity giv­ing rise to tax li­ab­il­ity was not car­ried on for a full year, the turnover must be ex­tra­pol­ated to a full year.