The VAT Law has been implemented only recently in Switzerland but it is nevertheless one of tax law that has seen the main changes during the last ten years. If the law itself did not face that much changes, that cannot be said of the publications of the Federal tax administration, which purpose is to comment the VAT practice of the Federation.

Those publications, frequently completed or modified, represent more than 3000 pages of comments on how to apply VAT. This being said, it is obvious that for the non specialist, VAT is a labyrinth with the certainty to never completely find the way out. Moreover, most of the notices have been recently modified and frequent modifications of the practice are published each year.

VAT is a so-called self-declaratory tax, which means that it is the duty of the tax payer to estimate how much VAT he has to pay or claim back. If he does it wrong, in case of a VAT audit, the Federal tax administration will consider that the fault is his and he will have to pay the additional VAT, plus interest for late payment and sometimes also penalties.

To manage its VAT risk means to ensure that its enterprise is not currently exposed to eventual VAT corrections due to a wrong understanding or management of the VAT Law or its notices. To manage its VAT risk, it is also to manage its accounting, its commercial transactions and all the administrative documents that are necessary to show a proper and correct VAT treatment of the commercial transactions.

Our specialists have a large experience in VAT and we will be able to guide you on the VAT treatment that applies to your transactions. We also propose regular « check-ups », kind of small VAT audits, during which we point out what has to be corrected to avoid bad surprises in case of a VAT audit of the tax authority.

Don't forget to check our VAT newsletters:

First part of VAT Reform

Second part of VAT Reform