Value added tax

If an asset deal between VAT-registered parties involves services and supplies rendered within Switzerland for consideration, the resulting taxable turnover will be taxed at the current VAT rate, and that VAT may be passed on to the investor.

It is necessary to check having regard to the specific circumstances of each individual case whether and to what extent the “reporting procedure” (Article 47(3) of the Swiss Law on Value Added Tax) is sufficient.

Joint and several liability of an investor in a business for the VAT debt accrued by the vendor prior to sale!

  • Pursuant to Article 15(1)(d) and Article 16(2) of the Swiss Law on Value Added Tax, the investor in a business adopts the rights and liabilities under tax law which were vested in the business which is taken over (statutory transfer of liability)
  • (joint and several) liability: for the VAT liability incurred by the vendor
  • Duration: 3 years
  • Start of the three-year period of joint and several liability: from the provision of notice to the tax authorities
  • Should also apply if only assets, and no liabilities, are transferred under the asset deal.
Print / Share: