Taxes

Notional input tax can be deducted for untaxed agricultural products or used individualizable items. Conditions for this are domestic reference and entrepreneurial use.

The withholding tax in Switzerland aims to prevent tax evasion by taxing returns on capital assets and certain other income at the source. Taxpayers can reclaim this tax, provided they declare their income correctly.

Companies can now register entirely online for value-added tax, making paper forms and postal dispatch unnecessary. The online process also directly checks the prerequisites for VAT accounting.

In Switzerland, certain services, such as medical treatments and educational offers, are exempt from value-added tax. These tax exemptions serve socio-political or economic objectives but do not allow for the deduction of input tax.

In Switzerland, the standard VAT rate is 8%, while certain goods such as food and medicine are taxed at only 2.5%. In the hospitality sector, the reduced rate is only applied if there are no options for on-site consumption.

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.

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.