English translation of Article 33 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 33 of the Swiss VAT Act 2010

Reduction of the input tax deduction 
 
  1. Flows of funds not deemed to be consideration (Article 18(2)) do not result in a reduction of the input tax deduction, subject to paragraph 2. 
      
  2. The taxable person must reduce his input tax deduction proportionately if he receives money under Article 18(2)(a)-(c). 
 

Article 75 of the Swiss VAT Ordinance 2010 (Input Tax Reduction) clarifying Article 33 Section 2 of the Swiss VAT Act 2010

 
1. The input tax does not have to be reduced if the funds under Article 18 Section 2 (1) (a)–(c) of the Swiss VAT Act 2010 are attributable to a business activity for which no input tax is incurred or for which no claim to input tax deduction exists.
 
2. To the extent the funds under Article 18 Section 2 (a)–(c) of the Swiss VAT Act 2010 can be attributed to a specific business activity, only the input tax on the expenditures for this business activity is to be reduced.
 
3. If the funds under Article 18 Section 2 (a)–(c) of the Swiss VAT Act 2010 are paid to cover an operating deficit, the input tax is to be reduced overall in proportion to these funds to the total turnover, excluding VAT. 78   6th Chapter: Calculation and     constitution of the tax claim 1st Section: Annual accounts (Article 34 Section 3 of the Swiss VAT Act 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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