New VAT return form and annual VAT return in Switzerland
From 1 January 2010
With effect from 1 January 2010, any business submitting VAT returns into Switzerland should have implemented the new Swiss VAT return formats in order to be compliant with the new Swiss VAT law (nMWSTG).
Currently, all VAT return turnover figures are reported on part 1 of the Swiss VAT return form, part 2 contains the calculation of the VAT due.
Additional details required on the VAT return form
In line with the new regulations, taxpayers now have to report in more detail the following information by disclosing the relevant turnovers as a separate line item:
Income generated from supplies of goods or services to recipients established outside of Switzerland where no Swiss VAT was charged (e.g. management services, consulting services, export of goods)
Income generated from the transfer of business assets
Correction of input VAT deducted where the supply became a self-supply
Reductions due to subsidies must be declared in a separate input box
Any other revenue, such as compensation payments, receipt of dividends or donations must also be separately reported
New Annual VAT return
Swiss taxpayers are currently only required to submit quarterly VAT returns. With effect from 1 January 2010, Switzerland requires the submission of an annual return (fifth return), based on the calendar- or financial year of the company. Similar to the German annual VAT return, this return is a summary return, used to declare any corrections required to the input or output VAT figures.
Adjustment of accounting systems
VAT codes in your Swiss ERP systems will need to be aligned to reflect both the new place of supply rules for services, as well as aligning the turnover figures to the correct box on the new VAT return form.
If you require assistance with the above, please do not hesitate to contact us via your usual channels.