English translation of Article 71 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 71 of the Swiss VAT Act 2010

Filing of VAT returns
  1. The taxable person must of his own motion file a VAT return in the prescribed form to the Federal Tax Administration within 60 days of the end of the filing period

  2. Where tax liability has ended, the period will begin to run from the end date


Article 126 of the Swiss VAT Ordinance 2010 (Effective reporting method) clarifying Article 71 and 72 of the Swiss VAT Act 2010

  1. When using the effective reporting method the taxable person must for reporting to the Federal Tax Authorities record the following values in a suitable manner:

    a. the total of all considerations subject to domestic tax; this includes in particular the considerations for:
    1. taxed supplies, classified by tax rates,
    2. goods and services that are taxed voluntarily under Article 22 of the Swiss VAT Act 2010 (Option),
    3. goods and services that are exempt from the tax under Article 23 of the Swiss VAT Act 2010,
    4. goods and services to beneficiaries under Article 2 GSG19, that are exempt from the VAT under Article 143 of this ordinance,
    5. goods and services for which the notification procedure under Article 38 of the Swiss VAT Act 2010 was used,
    6. goods and services that are exempt from tax without credit under Article 21 of the Swiss VAT Act 2010;
    b. abatements of the consideration when reporting under agreed considerations to the extent they are not taken into consideration in another caption;

    c. not falling within the scope of VAT:

    1. consideration for goods and services whose place of delivery lies abroad under Articles 7 and 8 of the Swiss VAT Act 2010,
    2. cash flows not qualifying as consideration under Article 18 Section 2 (a)–c of the Swiss VAT Act 2010,
    3. other cash flows not qualifying as consideration under Article 18 Para graph 2 (d)–l of the Swiss VAT Act 2010;
    d. the total consideration for goods and services subject to the acquisition tax classified by tax rates;

    e. the total of all deductible input taxes before corrections and reductions under (f), classified into:

    1. input tax on cost of materials and services,
    2. input tax on investments and other operating costs,
    3. detaxation;

    f. the amounts by which the input tax deduction must be corrected or reduced as a result of:

    1. mixed use under Article 30 of the Swiss VAT Act 2010,
    2. own use under Article 31 of the Swiss VAT Act 2010,
    3. receipt of cash flows that do not constitute consideration under Article 33 Section 2 of the Swiss VAT Act 2010;
    g. the total of the import tax reported under the movement procedure.

  2. The Federal Tax Authorities can consolidate several values under Section 1 into one box of the reporting form or refrain from requiring them in the periodic reporting. 

Article 127 of the Swiss VAT Ordinance 2010 (Reporting under the net tax rate or the flat tax rate method) clarifying Article 71 and 72 of the Swiss VAT Act 2010

     1. When using the net tax rate or flat tax rate reporting method the taxable person must record the following values in a suitable manner for reporting to the Federal Tax Authorities:
a. the total of all considerations subject to domestic tax; this includes in particular the considerations for:
1. taxed goods and services, classified by net tax rates and flat tax rates,
2. goods and services that are exempt from the tax under Article 23 of the Swiss VAT Act 2010,
3. goods and services to beneficiaries under Article 2 GSG20, that are exempt from VAT under Article 143 of this ordinance,
4. goods and services for which the notification procedure under Article 38 of the Swiss VAT Act 2010 was used,
5. goods and services that are exempt from the tax without credit under Article 21 VAT Act;
b. abatements of the consideration when reporting under agreed considerations, to the extent they are not taken into consideration in another caption; 20 SR 192.12 96   
 
c. not falling within the scope of VAT:
1. consideration from supplies, whose place of delivery lies abroad under Articles 7 and 8 of the Swiss VAT Act 2010,
2. cash flows not qualifying as consideration under Article 18 Section 2 (a)–(c) of the Swiss VAT Act 2010,
3. other cash flows not qualifying as consideration under Article 18 Para graph 2 (d)–(l) of the Swiss VAT Act 2010;
d. the total consideration for supplies subject to the acquisition tax classified by tax rates;
 
e. tax credits arising from the use of a special procedure made available by the Federal Tax Authorities under Article 90 Sections 1 and 2;
 
f. fair value of the immoveable goods under Article 93, that are no longer used for business purposes or are newly used for a business exempt from the tax without credit under Article 21 Section 2 of the Swiss VAT Act 2010.
     2. The Federal Tax Authorities can consolidate several values under Section 1 under on heading of the reporting form or refrain from requiring them in the periodic reporting.

Article 128 of the Swiss VAT Ordinance 2010 (Additional documentation) clarifying Article 71 and 72 of the Swiss VAT Act 2010

     1. The Federal Tax Authorities can require of the taxable person that it submit, in particular, the following documentation:
a. a summary of the details mentioned in Article 126 or 127 for the entire tax period (declaration for the tax period);
b. the duly signed annual accounts or, if the taxable person is not required to keep books of account, a schedule of the receipts and expenditures as well as of the assets of the business at the beginning and end of the tax period;
c. the audit report, if one is to be issued for the taxable person;
d. a turnover reconciliation under Section 2;
e. for taxable persons who report using the effective method, an input tax reconciliation under Section 3;
f. for taxable persons who report using the effective method, a schedule showing the calculation of the input tax corrections and reductions undertaken, from which the input tax corrections under Article 30 of the Swiss VAT Act 2010, the own use events under Article 31 of the Swiss VAT Act 2010 and the input tax reductions under Article 33 Paragraph 2 of the Swiss VAT Act 2010 can be seen.
     2. From the turnover reconciliation it must be possible to see how the declaration for the tax period can be reconciled with the annual accounts taking into consideration the different tax rates or the net tax and flat rates . To be considered in particular are:
a. the operating turnover reported in the accounts;
b. the revenues booked on expense accounts (expense reductions);
c. the inter-company charges that are not included in the operating turnover;
d. the sales of supplies;
e. the payments on account;
f. the other receipts that are not included in the operating turnover;
g. the benefits in kind;
h. the revenue abatements;
i. the bad debts; and
j. the closing entries, such as periodic accruals, the provisions and internal regarding classifications that are not turnover relevant.
     3. From the input tax reconciliation it must be possible to see that the input taxes have been reconciled with the input taxes declared according to the input tax accounts or other records.
 
     4. The demand for additional documentation under Sections 1–4 does not represent a demand for comprehensive documentation in the sense of Article 78 Section 2 of the Swiss VAT Act 2010.

Corresponding Article of the EU VAT Directive (Recast)

Article 250 - 252 of the EU VAT Directive
 
Returns
 
Article 250
 
(1.) Every taxable person shall submit a VAT return setting out all the information needed to calculate the tax that has become chargeable and the deductions to be made including, in so far as is necessary for the establishment of the basis of assessment, the total value of the transactions relating to such tax and deductions and the value of any exempt transactions.
 
(2.) Member States shall allow, and may require, the VAT return referred to in paragraph 1 to be submitted by electronic means, in accordance with conditions which they lay down.
 
Article 251
 
In addition to the information referred to in Article 250, the VAT return covering a given tax period shall show the following:
(a) the total value, exclusive of VAT, of the supplies of goods referred to in Article 138 in respect of which VAT has become chargeable during this tax period;
(b) the total value, exclusive of VAT, of the supplies of goods referred to in Articles 33 and 36 carried out within the territory of another Member State, in respect of which VAT has become chargeable during this tax period, where the place where dispatch or transport of the goods began is situated in the Member State in which the return must be submitted;
(c) the total value, exclusive of VAT, of the intra-Community acquisitions of goods, or transactions treated as such, pursuant to Articles 21 or 22, made in the Member State in which the return must be submitted and in respect of which VAT has become chargeable during this tax period;
(d) the total value, exclusive of VAT, of the supplies of goods referred to in Articles 33 and 36 carried out in the Member L 347/46 EN Official Journal of the European Union 11.12.2006 State in which the return must be submitted and in respect of which VAT has become chargeable during this tax period, where the place where dispatch or transport of the goods began is situated within the territory of another Member State;
(e) the total value, exclusive of VAT, of the supplies of goods carried out in the Member State in which the return must be submitted and in respect of which the taxable person has been designated, in accordance with Article 197, as liable for payment of VAT and in respect of which VAT has become chargeable during this tax period.
Article 252
 
(1.) The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
 
(2.) The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided that those periods do not exceed one year.
Comments