In Switzerland, import turnover tax is referred to as Value Added Tax (VAT). The handling of VAT on imports generally occurs as follows:
1. Customs Declaration and Import Duty:
When importing goods into Switzerland, they must be declared to the customs authorities. The customs value of the goods is determined, and import duties may apply.
2. VAT Calculation:
VAT is applied to the customs value of the goods as well as to any import duties incurred. The standard VAT rate in Switzerland is generally 8.1%, but there is also a reduced rate of 2.6% for certain goods and services.
3. VAT Payment:
VAT generally has to be paid directly when goods are imported. This can be done at customs or via an electronic procedure. Payment can be made in cash or via electronic payment methods.
4. Possibility of Refund:
Under certain conditions, it’s possible to reclaim part or all of the VAT paid. This may be the case, for instance, if the imported goods are used for business purposes and the importer is entitled to input tax deduction.
5. Input Tax Deduction for Companies:
Companies in Switzerland can claim the VAT paid on imported goods as input tax. This is done through the input tax deduction process, where the VAT paid is deducted from the VAT owed.
6. Electronic Customs Clearance:
Switzerland has an electronic customs clearance system that facilitates the efficient processing of imports. Companies can submit electronic declarations and payments.
7. Proof of Payment and Accounting:
Receipts proving the payment of VAT should be carefully kept. This is important for accounting purposes and potential refund applications.
It’s important to note that the exact procedures and conditions can vary depending on the specific circumstances, the type of goods, and the regulations of the Swiss customs authorities. Therefore, companies should familiarize themselves with the current customs and tax regulations before importing and, if necessary, consult experts or advisors to ensure smooth processing and to take advantage of all relevant benefits.
