English translation of Article 30 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 30 of the Swiss VAT Act 2010

Mixed use 
  1. If the taxable person also uses goods, parts thereof or services outside his sphere of business activity, or uses these within his business activity both for supplies entitling the taxable person to make an input tax deduction and for supplies excluded from input tax deduction, he must correct the input tax deduction in proportion to their use. 

  2. If such a pre-supply is predominantly used in the course of the business activity involving supplies entitling the taxable person to make an input tax deduction, the input tax may be deducted in full and amended at the end of the tax period (Article 31). 
 

Article 65 of the Swiss VAT Ordinance 2010 (Methods of calculating the correction) clarifying Article 30 of the Swiss VAT Act 2010

The correction of the input tax deduction can be calculated:

a. according to the effective usage;
b. using flat rate methods with flat rates determined by the Federal Tax Authorities;
c. based on own calculations. 75 641.201 Taxes

Article 66 of the Swiss VAT Ordinance 2010 (Flat rate methods) clarifying Article 30 of the Swiss VAT Act 2010

The Federal Tax Authorities determine flat rates in particular for:

a. businesses of banks;
b. the business of insurance companies;
c. businesses of specially financed agencies of political units;
d. the granting of loans and for interest income and income from trading in securities;
e. the management of owned property for which taxation is not opted for under Article 22 of the Swiss VAT Act 2010;
f.  public transport enterprises.

Article 67 of the Swiss VAT Ordinance 2010 (Own calculations) clarifying Article 30 of the Swiss VAT Act 2010

If the taxable person bases the correction of the input tax deduction on his or her own calculations, he or she must give evidence in detail concerning the facts underlying the calculations and perform a plausibility test.

Article 68 of the Swiss VAT Ordinance 2010 (Choice of method) clarifying Article 30 of the Swiss VAT Act 2010

  1. The taxable person can use one or more methods to calculate the correction of the input tax deduction, provided the method(s) lead to an objective result.

     2.   Objective is any use of one or more methods that takes into consideration the principle of efficiency of imposition, is auditable economically and allocates the input taxes according to their use for a particular activity.

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

Article 173 (1)  of the EU VAT Directive

Proportional deduction

1. In the case of goods or services used by a taxable person both for transactions in respect of which VAT is deductible pursuant to Articles 168, 169 and 170, and for transactions in respect of which VAT is not deductible, only such proportion of the VAT as is attributable to the former transactions shall be deductible.

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