VAT - Effective Accounting Method

Effective VAT accounting in Switzerland requires quarterly reporting and accurate input tax deduction according to applicable law.

2016

In the effective method for VAT accounting, the input tax is deducted from the owed domestic, acquisition, and import tax. The submission of the VAT accounting to the Federal Tax Administration (FTA) must be done on a quarterly basis.

Calculation of VAT Using the Effective Method

According to Art. 36 Para. 1 and Art. 35 Para. 1 item a MWSTG (VAT Act), VAT is generally to be accounted for using the effective method and must be submitted quarterly. The tax claim is calculated based on the difference between the owed domestic tax, the acquisition tax, the import tax declared in the transposition procedure, and the input tax credit (Art. 36 Para. 1 MWSTG).

More blog posts

In-depth insights, inspiring success stories and practical tips for entrepreneurs - discover more in our other articles.

Withholding Tax in Switzerland: What Private Individuals Need to Know

The reference tax is a special value-added tax in Switzerland for foreign services, relevant when the provider is not locally subject to VAT. Private individuals must declare and pay this themselves if services exceed CHF 10,000 per year.

Abschaffung des Eigenmietwerts

Der Eigenmietwert, ein umstritten konzipiertes fiktives Einkommen für Eigenheimbesitzer seit 1934, bleibt trotz neuer Abschaffungsbestrebungen bestehen. Diese Steuer trägt zu staatlichen Einnahmen bei, jedoch gibt es Kritik und Debatten über dessen Gerechtigkeit und Auswirkungen auf den Tourismus.

Self-reporting without penalty for natural persons

A voluntary disclosure in Switzerland allows for the subsequent disclosure of undeclared income to avoid criminal consequences, but only once and under specific conditions. Completeness, unawareness of prior information from the authorities, and payment of back taxes are essential for a penalty-free resolution.