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VAT audits are conducted by the FTA on a sampling basis to verify the self-assessment of the tax. Audits involve the examination of accounting documents and final accounts, with corrections made for any discrepancies.

The value-added tax (VAT) in Switzerland is 8% (standard), 2.5% (reduced), and 3.8% (special rate), targeting domestic end consumption. It is a net all-phase tax, where the end consumer pays the tax, while earlier stages utilize the input tax deduction.

The Federal Tax Administration requires sole proprietors residing abroad to provide VAT security of CHF 5,000 in a blocked account. This measure ensures the payment of the value-added tax.

Voluntary purchases into the pension fund reduce contribution gaps and enable tax deductions. Owners of AGs and GmbHs can optimize both corporate and private taxes through salary increases and reduced dividends.

AGs, GmbHs, and cooperatives may waive the limited audit with the consent of all partners if they have no more than 10 full-time positions. The waiver applies to the following years but can be revoked before the general meeting.

The limited audit is designed for SMEs that do not need to conduct a full audit; it is less thorough and only provides a negatively formulated assurance. Companies are allowed to perform it if they do not exceed certain size criteria, unless they have fewer than 10 full-time positions.

The Chilean platform LanzateSolo.cl, specialized in company formations, utilizes the technology of STARTUPS.CH and is now online. Chile is the first foreign expansion target, with plans for further expansions worldwide.

Flat and lump-sum tax rates simplify tax accounting in Switzerland by eliminating the need to determine input taxes separately. Conditions are an annual turnover below 5.02 million CHF and a tax burden below 109,000 CHF.

The input tax deduction allows entrepreneurs to deduct the VAT paid on purchases from the VAT owed on sales. This reduces the tax burden on the actual added value of the products sold.