English translation of Article 40 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 40 of the Swiss VAT Act 2010

  1. If reporting is on the basis of agreed considerations, the right to make an input tax deduction is arises at the time the invoice is received. The turnover tax debt is incurred: 
a. on invoicing;
b. with the issue of a partial invoice or upon receipt of partial payment, where the supply gives rise to a series of partial invoices or partial payments;
c. with the collection of the consideration on advance payments for taxable supplies and for supplies without an invoice.

      2. If reporting is based on collected considerations, the right to make an input tax deduction arises at the time of payment. The turnover tax liability is incurred on collection of the consideration.

      3. The right to make an input tax deduction based on the reverse tax arises at the time the acquisition tax is reported (Article 47). 

      4. The right to make an input tax deduction based on the import tax arises at the end of the filing period in which the tax was established. 


Corresponding Article(s) of the EU VAT Directive (Recast)

Article 62 of the EU VAT Directive

CHARGEABLE EVENT AND CHARGEABILITY OF VAT

For the purposes of this Directive:

(1) ‘chargeable event’ shall mean the occurrence by virtue of which the legal conditions necessary for VAT to become chargeable are fulfilled;

(2) VAT shall become ‘chargeable’ when the tax authority becomes entitled under the law, at a given moment, to claim the tax from the person liable to pay, even though the time of payment may be deferred.
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