English translation of Article 86 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 86 of the Swiss VAT Act 2010

Payment of VAT

  1. The taxable person must settle the tax claim arising in any given filing period within 60 days of the end of that period

  2. If the taxable person makes no payment or a payment that is obviously insufficient, the Federal Tax Administration, after issuing a reminder, shall seek to enforce its claim for the tax amount provisionally payable for the filing period in question. If no return has been filed for the taxable person or the return is obviously inadequate, the Federal Tax Administration will make an initial assessment according to its best estimation of the amount of tax provisionally payable.

  3. By filing his appeal, the taxable person instigates the procedure to have his appeal set aside. The Federal Tax Administration is responsible for setting aside the opposition in the ruling and appeal procedure.

  4. The ruling on the opposition may be contested by filing an objection with the Federal Tax Administration within 10 days of it being issued. The objection decision is final, subject to paragraph 5. 

  5. If the tax amount provisionally payable subject to enforcement proceedings is the result of an assessment made by the Federal Tax Administration according to its best judgment, an appeal may be filed in the Federal Administrative Court against the decision. The appeal has no suspensive effect, unless the court so orders on justified application. The Federal Administrative Court shall issue a final decision.  

  6. Article 85a of the Federal Act of 11 April 1889 [SR 281.1] on Debt Collection and Bankruptcy (DCBA) is not applicable. 

  7. The collection of a tax amount under paragraph 2 does not affect the assessment of the final tax claim. It is governed by Articles 72, 78 and 82. 

  8. Instead of a payment of the tax amount, the taxable person may provide security in accordance with Article 93 (7). 

  9. The Federal Tax Administration shall withdraw its debt enforcement claim immediately upon receipt of payment or security.


Article 142 of the Swiss VAT Ordinance 2010 (Enforcement costs) clarifying Article 86 of the Swiss VAT Act 2010

If the debt enforcement under Article 86 Section 9 of the Swiss VAT Act 2010 is withdrawn, the taxable person bears the enforcement costs incurred.

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

Article 206 of the EU VAT Directive

Any taxable person liable for payment of VAT must pay the net amount of the VAT when submitting the VAT return provided for in Article 250. Member States may, however, set a different date for payment of that amount or may require interim payments to be made.