VAT (Switzerland)

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The value added tax (abbreviated VAT ; French taxe sur la valeur ajoutée TVA , Italian imposta sul valore aggiunto IVA ; Romansh taglia sin la plivalur TPV ) is an indirect tax that the federal government on the basis of Article 130 Federal Constitutional rises. From January 1, 1995, it replaced the previously levied sales tax (WUSt). The value added tax is designed as an all-phase tax with input tax deduction .

Since January 1, 2018 and probably until the end of 2030, the rates of 7.7% standard rate, 2.5% reduced rate and 3.7% special rate apply to accommodation services.

With the exception of the mail order regulation ( 7 para. 3 let. B VAT Act ), the partially revised Value Added Tax Act (MWSTG) and the partially revised Value Added Tax Ordinance came into force on January 1, 2018.

General tax system

The value added tax is designed as an all-phase tax with input tax deduction. If a taxpayer provides a service to another taxpayer, the former has to pay the sales tax on the service, the recipient can reclaim the tax paid as input tax from the Federal Tax Administration (FTA), but must also pay tax on his services to his customer. This ensures that only the added value in a value chain is systematically recorded for tax purposes.

Domestic consumption is to be taxed. Therefore, services within Switzerland are taxed by the taxpayer. Deliveries from abroad are invoiced without Swiss VAT, but import tax and any duties and surcharges are levied at customs . The import tax can be reclaimed by taxpayers in the same way as domestic input taxes. Services abroad should also not be taxed. This is done through an exemption for deliveries or because the place of performance is abroad.

It is anticipated in the law domestic tax on services of domestic entrepreneurs, acquisition tax on services of foreign entrepreneurs to residents and the import tax for importing objects distinguished inland.

The domestic tax

Taxable sales

All supplies made by taxable persons are subject to domestic tax, unless they are expressly excluded from the tax:

  • deliveries of goods made in Germany against payment;
  • Services provided domestically for a fee.

Taxable persons

Both legal entities and natural persons or associations of persons can be taxable if they operate a company and are not exempt from tax. According to Art. 10 Para. 1  VAT Act, you run a company if you carry out a professional or commercial activity independently and thus want to generate sustainable income and appear externally under your own name. It is not necessary to also want to make a profit.

You are exempt from tax liability if you do not exceed the turnover limit of 100,000 francs; However, as an entrepreneur, you can voluntarily submit yourself to VAT. Upon request, several companies can be treated as one taxpayer (“group taxation”). Special rules apply to foreign entrepreneurs and non-profit organizations as well as to sports and cultural clubs.

Delimitation of domestic and foreign

The term domestic used in the text of the law does not correspond to the national borders of the Swiss Confederation. In Art. 18 VAT Act domestic is defined. The following are considered domestic:

  • the territory of Switzerland;
  • foreign areas in accordance with international agreements. These include the Principality of Liechtenstein and the German exclave Büsingen am Hochrhein within Switzerland.
  • An exception are the valleys Montague and Sampuor that are excluded from the Swiss customs territory. However, the federal law on value added tax stipulated that this law is still applicable to services in the two valleys. The two valley communities must compensate the federal government for the tax losses resulting from this provision. Savings resulting from the lower data collection effort are appropriately taken into account.

The law defines foreign countries as all areas that are not located within the political national borders of the Swiss Confederation or to which one of the exception clauses expressly mentioned in the law ( duty-free warehouse , duty-free ports, international agreement) applies.

Qualification of sales

Deliveries

According to Art. 3 VAT Act, a delivery occurs when an item is sold. However, the rental of objects (for example a vehicle) also constitutes a delivery, even if the object is returned at the end of the rental period. Furthermore, the processing of buildings and the processing of objects are equated with deliveries (manufacture). Please note that processing does not require adding or adding components. Washing clothes, for example, is also a delivery. In addition to movable and immovable things, items also include cold, heat, electricity, gas and the like.

Examples:

Sale of edibles, e.g. B. at the bakery, cleaning the car in the car wash, changing a seal on the water pipe, selling software on a diskette, harrowing or plowing the soil, ironing shirts, services of the dog coiffeur.

Services

According to Art. 3 VAT Act, a service is provided for all services that do not constitute deliveries. Also explicitly mentioned are sales with intangible assets as well as the compensation for actions or their waiver or tolerance of conditions. It can thus be stated that everything that cannot be recorded with a delivery falls under the condition of the service.

Examples: consumption of coffee and croissants in a café, subscription to radio / television reception, installation of software via remote data transmission, analysis work, provision of personnel, granting of a patent for further marketing, planning services by the architect for a new building, advertisement in a magazine, brokerage of a business between two parties, disposal service.

Place of taxable turnover

Whether a service is taxable depends on the place where the service is provided. Only domestic services are subject to VAT. In order to determine the tax liability of a service, it is therefore necessary to examine what type of service it is.

Place of delivery

Art. 7 VAT Act determines the place of delivery. The place of delivery is the place where:

  • the item is at the time of obtaining the ability to dispose of it economically, of delivery or release for use or use;
  • the transport or dispatch of the item to the customer or on his behalf to a third party begins.

This means that the rental of a car can be controlled where the vehicle is handed over. Services to structures can also be controlled where the structure is located. So if a Swiss construction company builds a house for a Swiss customer in Vorarlberg , this turnover is not subject to Swiss VAT.

Place of service

Art. 8 para. 1 VAT Act determines the place of a service. Unless the law provides for an exception, the place of residence or place of business of the recipient is the place of performance.

Art. 8 para. 2 VAT Act determines a different place of performance for the following services:

  • in the case of services that are provided to natural persons who are physically present: the place where the person providing the service has the seat of the economic activity;
  • for services provided by travel agencies and event organizers: the place where the person providing the service has the seat of economic activity;
  • for services in the field of culture, the arts, sports, science, teaching, entertainment or similar services: the place where these activities are actually carried out;
  • for hospitality services: the place where the service is actually provided;
  • in the case of passenger transport services: the place where the transport actually takes place in relation to the distance covered;
  • for services in connection with a property (administration or appraisal of the property, services in connection with the acquisition or ordering of real rights to the property as well as services in connection with the preparation or coordination of construction work such as architectural and engineering work): the place at which the property is located;
  • in the case of international development cooperation and humanitarian aid services: the place for which the service is intended.

If a marketing company provides advertising services for a German customer in Switzerland, the place of performance is abroad, which means that the advertising service is invoiced without Swiss VAT.

The acquisition tax

If a Swiss customer purchases a service from abroad (e.g. software purchase from a German server) or a delivery that is not subject to import tax (e.g. foreign personnel working on their own machines), this service does not physically cross the border. In order not to disadvantage domestic service providers, it must be ensured that the foreign service is also recorded with a tax. This is done in such a way that the domestic recipient of a service settles the purchase with the Federal Tax Administration (reverse charge procedure). Therefore, taxpayers must settle all purchases of affected services from abroad with the FTA (acquisition tax), but can claim the input tax deduction. Non-taxpayers (e.g. private individuals) must report to the FTA if their use of such services exceeds CHF 10,000 per year. The tax administration will then send you a corresponding invoice (disposition). However, this procedure only leads to a limited tax liability for these persons (without input tax deduction right).

The import tax

Imports of goods into Switzerland are also registered for VAT by customs . The tax base is normally the consideration for the item, otherwise the market value ( Art. 54 Para. 1 VAT Act).

In general, all mail items that are not sent from the Swiss customs area are also subject to tax. For administrative reasons, tax amounts of up to 5 Swiss francs are not levied. This tax amount corresponds to an assessment base of 65 Swiss francs at the VAT rate of 7.7% or 200 Swiss francs at the VAT rate of 2.5%.

Since January 1, 2019, those who send small consignments exempt from import tax (i.e. the import tax does not exceed 5 francs) from abroad to Switzerland for at least CHF 100,000 per year are subject to VAT in Switzerland.

Tax rates

The rates of value added tax are laid down in Article 130 of the Federal Constitution. There, the Swiss Confederation is stipulated that it may levy VAT at a normal rate of 6.5 percent and a reduced rate of at least 2.0 percent on deliveries of goods and services, including personal consumption, and on imports.

Based on Art. 196 Paragraph 3 Clause 2 Letter e of the Federal Constitution, the federal government is permitted to levy a further 0.1 percentage points for the financing of major railway projects . In order to finance the development of the age structure for the AHV / IV , the federal government was authorized in the form of a federal law to increase the standard rate by a maximum of one percentage point and the reduced rate by 0.3 percentage points.

Due to the defined principles for the structure of the Federal Law on Value Added Tax in the Federal Constitution, the standard rate (7.7%) was composed as follows:

  • 7.6% to collect a standard rate for deliveries of goods and services
  • 0.1% to finance major railway projects ( NEAT )

Until the end of 2017, the IV was additionally financed by VAT by 0.4 VAT percentage points and from January 1, 2018, the VAT rates increased by 0.1 percentage points due to the financing of the expansion of the FABI rail infrastructure . Since then, the normal rate of 7.7%, the reduced rate of 2.5% and the special rate of 3.7% apply.

The reduced rate (2.5%), which is levied on deliveries and personal consumption of some everyday or agricultural goods (finally regulated in Art. 25 Para. 2 VAT Act), is made up as follows:

  • 2.4% to collect a standard rate for deliveries of goods and services
  • 0.1% to finance major railway projects ( NEAT )

The following goods and services are taxed at the reduced rate:

  • Food and tap water
  • Medication
  • Feed and litter for animals, as well as seeds, tubers and the like
  • Printed matter

The federal government may levy a reduced rate for accommodation services in the Swiss hotel industry. This is 3.7 percent. The law defines an accommodation service as the provision of accommodation including the serving of breakfast, even if this is charged separately.

Development of VAT rates

date mutation Standard rate reduced rate Special rate for accommodation services
01/01/1995 Introduction of VAT 6.5% (+ 6.5%) 2.0% (+ 2.0%) -
10/01/1996 Introduction of the special rate for accommodation services 6.5% (+ 0.0%) 2.0% (+ 0.0%) 3.0% (+ 3.0%)
01/01/1999 Increase in favor of the AHV and IV 7.5% (+1.0%) 2.3% (+ 0.3%) 3.5% (+ 0.5%)
01/01/2001 Increase to finance major railway projects (FinöV) 7.6% (+ 0.1%) 2.4% (+ 0.1%) 3.6% (+ 0.1%)
01/01/2011 Increase for the renovation of the IV (limited until December 31, 2017) 8.0% (+ 0.4%) 2.5% (+ 0.1%) 3.8% (+ 0.2%)
01/01/2018 Increase for FABI , decrease when the increase expires in 2011 7.7% (−0.3%) 2.5% (± 0.0%) 3.7% (−0.1%)
01/01/2030 Expiring FABI additional funding 7.6% (−0.1%) 2.4% (−0.1%) 3.6% (−0.1%)

Tax liability

Registration requirement

Companies that become taxable for domestic tax must register with the Federal Tax Administration in Bern within 30 days of their own accord ( Art. 66 Para. 1 VAT Act). If you do not already have one, you will receive your own company identification number (UID) and will be registered as a taxpayer. The UID replaces the previous VAT number, which could continue to be used until the end of 2013.

Subjective exceptions

According to Art. 21 VAT Act, the activity of board members etc. is to be regarded as salaried employment and is therefore not subject to VAT. In Art. 25 VAT Law further subjective exceptions are listed from tax liability. These are farmers, foresters and gardeners who sell their own primary products (without buying in third-party products), cattle dealers and milk collection points.

Tax-free sales

The deliveries (and in some cases directly related services) abroad are not subject to tax liability, but entitle them to input tax deduction. It is therefore genuinely tax-exempt. The tax-exempt sales are listed in Art. 23 VAT Act. The following are exempt from the tax:

  • the delivery of objects that are transported or dispatched directly abroad (does not apply to the release for use or use of means of transport);
  • the transfer for use or use, in particular the rental and chartering out, of rail and aircraft vehicles, provided that these are mainly used abroad by the recipient of the delivery;
  • the domestic deliveries of objects of foreign origin that were verifiably under customs control;
  • the other transport or dispatch of objects abroad not in connection with an export delivery, in particular the bringing of tools abroad;
  • the transport or dispatch of objects across the border in connection with the export or import of objects and all other related services;
  • the domestic transport of objects and all other related services if the objects are under customs control and are intended for export (duty-unpaid goods in transit);
  • Deliveries, conversions, repairs, maintenance, chartering and rental of aircraft used by companies that operate commercial aviation in transport or charter traffic and whose sales from international flights outweigh those from domestic air traffic; Deliveries, rentals, repairs and maintenance of the objects built into these aircraft or the objects for their operation; Deliveries of objects for the supply of these aircraft as well as services which are intended for the direct needs of these aircraft and their loads;
  • the services of intermediaries acting expressly in the name of and for the account of a third party, if the mediated transaction is either tax-free according to this article or is exclusively effected abroad; in the case of sales both domestically and abroad, proportional exemption on sales abroad;
  • Services provided by travel agencies in their own name, insofar as they use the supplies and services of third parties that are provided by them abroad; In the case of sales both domestically and abroad, proportional exemption on sales abroad.

Further provisions in Art. 19 :

The Federal Council can exempt transports in cross-border air and rail traffic from the tax in order to maintain competitive neutrality. This has made use of this in the ordinance, in that the entire route in international air traffic is abroad if the departure or arrival airport is abroad. Direct export in accordance with paragraph 2 number 1 exists if the delivery item is either transported or dispatched abroad by the taxable person himself or by his non-taxable buyer without the latter having previously used the item in Germany or within the framework has handed over a delivery transaction to a third party. The object of the delivery may have been processed or processed by agents of the non-taxable customer before export.

Tax calculation and assessment methodology

Pre-tax

Material requirements

Anyone who makes taxable or tax-free sales is entitled to reclaim the input taxes incurred on these expenses from the FTA ( Art. 38 VAT Act).

  • If the taxable person uses goods or services for a business purpose named in paragraph *, they can deduct the following input taxes in their tax return, which must be proven: *
    • the tax for supplies and services invoiced to it by other taxable persons with the information pursuant to Art. 37 ;
    • the tax declared by it for the purchase of services from companies domiciled abroad;
    • the tax paid or to be paid by it on the importation of objects of the Federal Customs Administration as well as the tax declared by it for the importation of objects ( Art. 83 ).
  • The following purposes allow input tax deduction:
    • controllable supplies;
    • controllable services;
    • Sales for which taxation was opted ;
    • Free donation of gifts of up to CHF 300 per recipient and year and of samples for company purposes ( Art. 9 Paragraph 1 Letter c ) as well as work on objects that are used for personal consumption in accordance with Art. 9 Paragraph 2 .
  • The taxable person can also deduct the input taxes listed in paragraph 1 if they use the goods or services for activities according to Art. 19 paragraph 2 or for activities that would be taxable if they were carried out in Germany.
  • In particular, sales that are exempt from tax, non-sales or private activities as well as sales in the exercise of sovereign authority do not entitle to input tax deduction.
  • Furthermore, 50 percent of the tax amounts on expenses for food and drinks are excluded from the right to deduct input tax.
  • If the taxable person has purchased products from agriculture, forestry, horticulture, cattle or milk from non-taxable farmers, foresters, gardeners, cattle dealers and milk collecting points for purposes that entitle them to input tax deduction according to paragraph 2, they can deduct 2.4 percent of their input tax deduct the amount invoiced. Art. 37 Paragraph 1 Letters a – e and Paragraph 3 apply.
  • The right to deduction arises:
    • in the case of tax passed on by other taxable persons: at the end of the accounting period in which the taxable person received the invoice (accounting according to the agreed fees) or in which they paid the invoice (accounting according to the fees received);
    • in the case of tax on the procurement of services from companies domiciled abroad: at the time at which the taxable person settles this tax with the Federal Tax Administration;
    • in the case of import tax in accordance with paragraph 1 letter c: at the end of the accounting period in which the customs declaration was accepted and the taxable person has the original of the import documents.
  • If a taxable person receives donations that cannot be allocated to individual sales of the recipient as consideration, their input tax deduction must be reduced proportionately. Her input tax deduction must also be reduced proportionally if she receives subsidies or other public contributions. Refunds, contributions and subsidies for deliveries abroad whose sales are exempt from tax according to Art. 19 Paragraph 2 Number 1 do not count as subsidies or public contributions.

Formal requirements

In addition to this material requirement, the formal provisions pursuant to Art. 37 VAT Act must also be met. Input taxes can only be reclaimed if the documents contain the following information:

  • the name and address at which it is entered in the register of taxable persons or which it is permitted to use in business transactions, as well as the number under which it is entered in the register of taxable persons;
  • the name and address of the recipient of the delivery or service, as it is permitted to appear in business dealings;
  • Date or period of delivery or service;
  • Type, subject and scope of the delivery or service;
  • the payment for the delivery or service;
  • the tax rate and the tax amount owed on the consideration.

If the consideration includes the tax, it is sufficient to state the tax rate.

While the FTA initially checked the aforementioned requirements in a very formalistic manner, the situation has since been eased. In the meantime, all common and customary (if applicable) company names are accepted for the address of the recipient in particular (Art. 15a VAT Act). Nevertheless, the beneficiary is well advised to insist on formally correct receipts in order to avoid undesirable offsetting. If a receipt subsequently turns out not to be VAT compliant, this can be partially corrected using Form 1550 - available on the Internet at www.estv.admin.ch.

ownconsumption

If such items, which were originally obtained for taxable or tax-exempt sales, are now used or removed for other purposes, the input tax must be corrected again in accordance with Art. 31 VAT Act. This is done by declaring self-consumption.

A classic example of personal consumption is the private use of company vehicles. According to the practice of the FTA, 9.6% (12 × 0.8% per month) of the purchase price of a vehicle is billed as personal consumption. For a vehicle with a purchase price of CHF 50,000 (excluding VAT), personal consumption is CHF 4,800 per year. The tax (8.00%) amounts to CHF 384.

The free delivery of objects also triggers the personal consumption tax. Exceptions are, on the one hand, gifts of up to CHF 500 per year and recipient and, on the other hand, product samples.

Billing types

Value added tax is levied at the border by the Federal Customs Administration and domestically by the Federal Tax Administration .

Income

Income
year Income
CHF million
1995
1996
1997
1998
1999 		8,857
11,958
12,477
13,255
15,060
  
year Income
CHF million
2000
2001
2002
2003
2004 		16'594
17'033
16'857
17'156
17'666
  
year Income
CHF million
2005
2006
2007
2008
2009 		18,119
19,018
19,684
20,512
19,889
  
year Income
CHF million
2010
2011
2012
2013
2014 		20,716
21,687
22,095
22,561
22,614
  
year Income
CHF million
2015
2016
2017
2018
2019 		22,454
22,457
22,901
-------
------

Historical

On January 1, 1995, sales tax was replaced by value added tax in Switzerland . The reduced rate at that time was 2% and the special tax rate was 3%. The normal rate was 6.2%, which was increased to 6.5% by federal resolution to restore the federal finances.

Due to the federal decree of March 20, 1998 on the increase of the VAT rates for the AHV / IV as well as the ordinance of December 23, 1999 on the increase of the VAT rates for the financing of major railway projects, the tax rates were increased to the current level. This should secure the financing of the NEAT and the future costs for the AHV / IV.

Based on Art. 130 of the Federal Constitution, the Federal Council can increase the rates by a maximum of 1% to 7.5% if necessary. He made use of this right with effect from January 1, 2001. Added to this is 0.1% for the financing of major railway projects, making a VAT rate of 7.6%.

The Federal Law of September 2, 1999 on Value Added Tax (Value Added Tax Act, VAT Act) came into force on December 1, 2001 after the referendum period had expired and replaced the previous Federal Council ordinance.

On November 28, 2004, the Swiss voters approved the federal resolution on a new financial regulation , which also included an amendment to the Federal Constitution (BV), with 73.8% yes-votes . On the one hand, various detailed regulations on value added tax were removed from the Federal Constitution, on the other hand, the old version of Article 196 only allowed federal tax to be levied until 2006. The result of the adopted reorganization was thus a “clearing out” of the BV and a further limited authorization for value added tax - and direct federal tax collection now until 2020.

The federal government raised direct taxes for the first time in 1916, and only for two years - because of the First World War . But over time these exceptional taxes became more common. In 1958 they were enshrined in the federal constitution, but limited in time. The vote on March 4, 2018 was about the ninth extension, which was accepted by the people and the cantons .

Current developments

politics

Since the introduction of VAT in 1995, 26 different exceptions have been introduced in Switzerland. Federal Councilor Kaspar Villiger has already complained about the growing number of exceptions.

His successor, the Swiss Finance Minister, Federal Councilor Hans-Rudolf Merz , went further and launched the idea of ​​a simplified VAT in 2003. In line with a “ flat tax ”, he had proposed that there should no longer be any exceptions in Switzerland in the future and that the current VAT rate of 2.5% on everyday goods, 3.7% on accommodation services and 7.7% to set a uniform rate in the range of 5 to 6% on all other services. The Federal Department of Finance formulates the properties of an "ideal value added tax" as follows:

  • It is still designed as a net all-phase tax with input tax deduction.
  • It only affects final consumption and is levied according to the country of destination principle.
  • She knows no exceptions.
  • It is charged at a flat rate.

Liberal proponents of a unified VAT argue that it frees companies from time-consuming and laborious delimitation and accounting problems. At the same time, the tax system will be simplified. In the political discussion, however, this proposal seems to have little chance of being realized. The standard rate of 5 to 6% would, among other things, lead to an increase in the price of basic foodstuffs (currently taxed at 2.5%), which would particularly affect the poorer sections of the population.

In mid-February 2006 the Federal Council decided that the Value Added Tax Act should be subject to a total revision. As an interim solution, Art. 45a MWSTGV was introduced on July 1, 2006. This is to ensure that the administration no longer confronts the person liable for VAT with unobjective additional claims for formal reasons. How this “article of pragmatism” should be implemented was still completely unknown.

In mid-February 2007, the Federal Council published the details and sent them for consultation :

  • The first “module” is the total revision of the VAT law (today with over 50 measures), which are intended to make everyday taxation easier and to create transparency and legal certainty, including the expansion of the net tax rate method , which enables simplified accounting.
  • The second “module” is the flat rate of 6 percent, which is intended to replace today's rates (7.6 percent, 2.4 percent for everyday goods and the special rate of 3.6 percent for accommodation services).
    As an alternative to this, a third “module” was presented with two sentences - the standard rate of unchanged 7.6 percent and a reduced rate of 3.4 percent for basic necessities that are still favored, now also for health care and other services that are excluded today.
    In particular, the health and social services with around 23,000 companies would be subject to VAT.
    A variant of this “module” provides for the health care system and parts of the social sector to continue to be exempt from taxation.
    The services provided by banks and insurance companies are still excluded.

At the end of June 2008 the Federal Council proposed a flat rate of 6.1 percent.

Regulation for 2011 to 2017

On September 27, 2009, the Swiss people approved a temporary increase in VAT from 2011 to 2017 to provide additional financing for disability insurance. During this period the normal rate is 8%, the reduced rate 2.5% and the special rate for accommodation services 3.8%.

Initiative to abolish VAT

In June 2011, the Green Liberal Party launched a popular initiative to abolish value added tax ( energy instead of value added tax ). According to the text of the initiative, this should be replaced by an energy tax on non- renewable energy sources . The tax is to be 'assessed per kilowatt hour of primary energy', whereby different tax rates can be set for the individual energy sources according to their overall ecological balance. A few other optional provisions in the initiative text leave the legislature open to design options: There can be exceptions to full taxation, and gray energy can therefore also be taxed additively to avoid distortions of competition . A refund is provided for export. With regard to the amount of the energy tax, after a start at the level of the previous value added tax, a fixed link to the gross domestic product is planned so that the state quota does not fluctuate unpredictably, the tax should thus be state quota- neutral. Up to around 20 percent of the income is used for the benefit of old-age insurance and for lower-income health insurance premiums.

This means that it is not work and surplus value that should be taxed, but energy. In addition to the main goal of an energy transition towards renewable energies, this concern could save high administrative costs for the federal government (approx. CHF 200 million annually) and high administrative costs for the more than 300,000 SMEs (approx. CHF 1.3 billion annually). The intention of the initiators is to make the energy tax based on the nuclear phase-out after Fukushima and the need for climate policy action neutral, i.e. not to burden the citizens additionally; The goal is a 'cost-neutral nuclear phase-out'. The green liberals intended to 'exempt consumers and companies from VAT' with a business-friendly control system.

After submitting them on time in 2012, the Federal Council and the Council of States generally endorsed the climate and energy policy thrust of the initiative: However, very high energy taxes would be necessary to finance the public budgets - at over CHF 20 billion, an estimated CHF 3 per liter of petrol - they would be energy - and by far exceed a level that can be justified by climate policy. In addition, unlike VAT, the tax base would be smaller because the energy tax would have a steering effect, the tax would then have to rise. The complete abolition of VAT is wrong. The very high energy tax would also have negative distribution effects, since households with lower incomes would be disproportionately burdened. The position of the initiative was represented in the Council of States by Markus Stadler (GLP / UR), but after the rejection of a counterproposal by a minority committee led by Luc Recordon (Greens / VD) with an incentive tax and reimbursement of the income to the population (29 to 12 votes) The Council of States in June (34: 3) and the National Council of Switzerland (171: 27) in September 2014 also decided to recommend that the people reject the popular initiative. The counter-proposal with energy incentive taxes was rejected in the National Council with 110 to 79 votes. The Federal Council wants to replace the current system of subsidies for the energy transition from 2021 onwards with a “climate and energy control system” . In 2015 there will be a consultation proposal without the abolition of VAT.

Economists

The Freiburg economists Reiner Eichenberger and Mark Schelker have proposed an abolition of VAT (published, inter alia, in Weltwoche 7/04)

They name the following five main advantages:

  1. The abolition of VAT relieves all taxpayers, especially those on low incomes.
  2. Value-added tax is practically a wage tax, especially for labor-intensive service companies. If it were abolished, the demand for simpler work would increase sharply. This would make it an effective remedy against unemployment and the progressive impoverishment of unskilled workers.
  3. The huge administrative burden of VAT collection for the federal administration and in certain sectors of the economy would be eliminated.

See also

Web links

Individual evidence

  1. ↑ a b Tax rates of the Federal Tax Administration , accessed on February 23, 2018.
  2. ↑ Partial revision of the VAT Act (entered into force on 01.01.2018). Federal Tax Administration, accessed on December 5, 2018 .
  3. ↑ Art. 1 VAT Act
  4. ↑ Art. 18 VAT Act
  5. ↑ Ordinance on the increase in VAT rates to finance major railway projects (PDF; 12 kB)
  6. ↑ Federal Tax Administration FTA - The current tax rates. (No longer available online.) Federal Tax Administration, archived from the original on June 22, 2012 ; Retrieved June 26, 2012 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.estv.admin.ch
  7. ↑ Federal Tax Administration FTA: Development of VAT rates. Retrieved October 4, 2017 .
  8. ↑ (UID) ( Memento of the original dated May 27, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. . Website of the Federal Statistical Office. Retrieved June 2, 2012. @1@ 2Template: Webachiv / IABot / www.bfs.admin.ch
  9. ↑ VAT receipts. Federal Tax Administration , accessed on January 25, 2019 .
  10. ↑ Article 196 Federal Constitution, old version; until December 31, 2006
  11. ↑ Art. 196 Federal Constitution, new version since January 1, 2007
  12. ↑ Federal Decree on the New Financial Regulations 2021 In: admin.ch , accessed on January 15, 2018
  13. ↑ Can the federal government continue to collect taxes? In: swissinfo.ch , accessed on January 15, 2018
  14. ↑ Difficult taming of a bureaucratic monster: Nachrichten - NZZ.ch. In: Neue Zürcher Zeitung . December 9, 2006, accessed March 17, 2019 . , u. a. also to the «pragmatism article»
  15. ↑ Value added tax of 6 percent: Federal Council wants radical simplification - Nachrichten - NZZ.ch. In: Neue Zürcher Zeitung . February 15, 2007, archived from the original on September 30, 2007 ; accessed on November 14, 2015 . : The Federal Council wants to radically simplify value added tax (VAT). The total revision should bring less bureaucracy, fewer exceptions and, if possible, a flat rate of 6 percent. A consultation is now in progress.
  16. ↑ Federal Department of Finance (February 15, 2007): Revision of the VAT ( Memento of December 20, 2007 in the Internet Archive )
  17. ↑ The Federal Council dares to hit the jackpot: uniform rate and fewer exceptions for VAT - Nachrichten - NZZ.ch. In: Neue Zürcher Zeitung . Retrieved November 14, 2015 .
  18. ^ Voting September 27, 2009: Additional IV financing through temporary VAT increase
  19. ↑ Voting results
  20. ↑ a b c Energiewende now - because it makes ecological, but also economic sense ( memento of the original from October 6, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 2 pages), media release on energy policy, Green Liberal Party, June 8, 2011, accessed on September 30, 2014. @1@ 2Template: Webachiv / IABot / www.grunliberale.ch
  21. ↑ Text of the popular initiative of the Green Liberal Party Switzerland “Energy instead of VAT” on admin.ch (Swiss Federal Chancellery), accessed on September 30, 2014.
  22. ↑ Value-added tax is inefficient & does not make sense - Contribution to the popular initiative “Energy instead of VAT”
  23. ↑ Roland Fischer : People's initiative “Energy instead of VAT” ( Memento of the original from October 2, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Media release from September 25, 2014, In: Grünliberale Party, accessed on September 30, 2014. @1@ 2Template: Webachiv / IABot / www.grunliberale.ch
  24. ↑ Message of November 20, 2013 on the popular initiative “Energy instead of VAT” (BBl 2013 9025) Summary of the debates in the Council of States and the National Council, The Federal Assembly - Swiss Parliament, November 20, 2013, added June 17, 2014 and September 25, 2014 , accessed September 30, 2014.
  25. ↑ Reiner Eichenberger and Mark Schelker : Free travel, less taxes (PDF; 135 kB), Die Weltwoche 07/04, on the homepage of the University of Freiburg .