English translation of Article 15 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. 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 15 of the Swiss VAT Act 2010 

Joint liability 
  1. Persons jointly and severably liable:   
     
    1. partners in an ordinary partnership, a general or limited partnership within the scope of their civil law liability; 
    2.  
    3. persons who voluntarily conduct or arrange an auction; 
    4.  
    5. every person or unincorporated entity that is a member of a VAT group (Article 13) for all taxes payable by the group; if a person or unincorporated entity withdraws from the group, they are liable only for the tax claims that have arisen from their own business activity; 
    6.  
    7. on transfer of a business: the previous tax debtor for three years after the announcement or reporting of the transfer for tax claims which arose before the transfer; 
    8.  
    9. on termination of the tax liability of a wound up legal entity, trading company or partnership without legal personality: the persons entrusted with the liquidation up to the amount of the liquidation surplus; 
    10.  
    11. for the taxation of a legal person that transfers its domicile abroad: the managing bodies up to the value of the net assets of the legal entity. 
  2.  
  3. The persons designated in paragraph 1 subsections (e) and (f) are liable only for the tax, interest and cost claims which arise or fall under their management; their liability lapses if they can prove that they have done everything that could reasonably be expected of them to ascertain and satisfy the tax claim. 
  4.  
  5. Liability under Article 12 paragraph 3 of the Federal Act of 22 March 1974 on Administrative Criminal Law (ACLA) is reserved.  
     
  6. If a taxable person assigns claims from his business to third parties, such third parties are liable on a subsidiary basis for the Value Added Tax included in the assignment, if at the date of the assignment the tax debt due to the Federal Tax Administration (FTA) has not yet arisen and a certificate of shortfall is been issued.  
     
  7. The person jointly and severally liable has in legal proceedings the same rights and obligations as the taxable person.  
     


Swiss VAT Ordinance

Article 22 of the Swiss VAT Ordinance 2010 (Joint liability for group taxation) clarifying Article 15 Section 1 (c) of the Swiss VAT Act 2010

  1. The joint liability of a member of a VAT group extends to all tax, interest, and cost claims that arise during its membership, except for fines.
  2.  
  3. If legal enforcement has been initiated against a group member, additional tax has been claimed by an assessment notice from the group representative or if an audit has been announced, a group member may not elude joint liability by withdrawing from the group (Section 4: Liability on the assignment of claims).   

Article 23 of the Swiss VAT Ordinance 2010 (Amount of the assignment) clarifying Article 15 Section 4 of the Swiss VAT Act 2010

If part of a claim is assigned for consideration, the VAT is also assigned proportionately. An assignment of a claim without VAT is not possible.

Article 24 of the Swiss VAT Ordinance 2010 (Amount of the liability) clarifying Article 15 Section 4 of the Swiss VAT Act 2010

  1. Liability under Article 15 Section 4 of the Swiss VAT Act 2010 is limited to the amount of the VAT that has actually been collected by the assignor during an enforcement procedure against the taxable person from the time of pledge or from the time bankruptcy proceedings are opened.
  2.  
  3. In a pledge or pledge realization procedure against a taxable person the Federal Tax Authorities must inform the assignor immediately after receipt of the pledge deed of his or her liability. 

  4. Once bankruptcy proceedings are opened against a taxable person, the Federal Tax Administration can claim the liability of the assignor irrespective of prior notification.

Article 25 of the Swiss VAT Ordinance 2010 (Release from liability) clarifying Article 15 Section 4 of the Swiss VAT Act 2010

By remitting the VAT to the Federal Tax Authorities, assigned and collected with the claim, the assignor is released from liability in that amount (2nd Chapter: Object of taxation 1st Section: Supply relationship).

Article 164 of the Swiss VAT Ordinance 2010 (Subsidiary liability on assignment) clarifying Article 15 Section 4 of the Swiss VAT Act 2010

The assignor is liable only for the VAT on receivables that he or she acquires under a blanket assignment concluded after 1 January 2010.



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

There is no corresponding provision.

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