English translation of Article 1 of the Swiss VAT Act 2010

This page contains an English translation of the below Article of the revised Swiss VATA 2010 and is part of a web based Swiss VATA 2010 commentary published in German by the VAT network Zurich, Switzerland. Should you require qualified written legal advice on cross-border transactions potentially triggering Swiss VAT  from a Swiss VAT lawyer please do not hesitate to contact: Harun Can


Article 1 of the Swiss VAT Act 2010

Subject and principles 
  1. The Confederation shall levy a general consumption tax based on the system of net all-phase taxation with input tax deduction (Value Added Tax). The purpose of the tax is to tax non-commercial end use on Swiss territory.  
     
  2. As Value Added Tax, it levies: 
    a.  a tax on goods and services supplied for consideration by taxable persons on Swiss territory (domestic tax);  
    b.  a tax on the receipt of goods and services on Swiss territory from enterprises having their place of business abroad (reverse charge on acquisition tax);  
    c.  a tax on the import of goods (import tax).  
     
  3. The tax is levied on the following principles:  
    a.  competitive neutrality; 
    b.  efficiency of payment and imposition;  
    c.  transmissibility.


Corresponding Article(s) of the EU VAT Directive (Recast) 2006/112/EC (as of January 2010)

Article 2 (1) a - d of the EU VAT Directive

  1. The following transactions shall be subject to VAT: 
    a.   the supply of goods for consideration within the territory of a Member State by a taxable person acting as such;
    b.   the intra-Community acquisition of goods for consideration within the territory of a Member State by:

    (i)  a taxable person acting as such, or a non-taxable legal person, where the vendor is a taxable person acting as such who is not eligible for the exemption for small enterprises provided for in Articles 282 to 292 and who is not covered by Articles 33 or 36;

    (ii) in the case of new means of transport, a taxable person, or a non-taxable legal person, whose other acquisitions are not subject to VAT pursuant to Article 3(1), or any other non-taxable person;

    (iii) in the case of products subject to excise duty, where the excise duty on the intra-Community acquisition is chargeable, pursuant to Directive 92/12/EEC, within the territory of the Member State, a taxable person, or a non-taxable legal person, whose other acquisitions are not subject to VAT pursuant to Article 3(1);

    c.   the supply of services for consideration within the territory of a Member State by a taxable person acting as such;
    d.   the importation of goods
 

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