Residence of the owner abroad: Ensuring VAT for sole proprietorships

The Federal Tax Administration may require a blocked account deposit of CHF 5,000 from foreign residents to secure VAT payments.

2013

Residence of the owner abroad: Ensuring VAT for sole proprietorships

To ensure VAT, the Federal Tax Administration may require the deposit of a sum of money into a blocked account.

Ensuring VAT

The Federal Tax Administration may oblige owners of sole proprietorships to pay a deposit amounting to CHF 5,000 under certain circumstances. This sum is required if the owner resides abroad. The deposit serves to ensure the payment of Value Added Tax (VAT). The amount of money must be paid into a blocked account. The request for payment of the security by the FTA is issued as soon as the VAT questionnaire has been submitted.

You can find more information about Value Added Tax on the Internet at the following sites: Federal Tax Administration and as a basis the Value Added Tax Act.

If you have questions about Value Added Tax or any other tax-related issues, the tax specialists at Findea are at your disposal. Findea offers comprehensive tax and legal advice and various other services.

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