Switzerland: Reminder to claim VAT refund for 2021 before June 2022 deadline

The deadline for filing a VAT refund claim is 30 June 2022, and cannot be extended.

The deadline for filing a VAT refund claim is 30 June 2022, and cannot be extended.

Businesses without a Swiss establishment and not registered for value added tax (VAT) purposes in Switzerland have until the end of June 2022 to file their refund claim for Swiss VAT incurred in 2021.

The deadline for filing a VAT refund claim is 30 June 2022, and cannot be extended.

Summary

Many businesses without an establishment or VAT registration in Switzerland often incur Swiss VAT on business expenses (e.g., travel and lodging expenses, purchases of goods in Switzerland or import VAT when importing goods into Switzerland). On an annual basis, this can result in a significant amount of Swiss VAT incurred by the business.

This VAT may not be an unrecoverable cost because in principle it can be claimed from the Swiss tax authorities. If a company incurs at least CHF 500 Swiss of VAT over the course of 2021, this amount of VAT can be refunded if a refund claim is filed before the end of June 2022, provided the business’ country of residence grants reciprocal rights to Swiss companies. Foreign companies are required to appoint a Switzerland-based fiscal representative to file such a refund request.

New this year is that Switzerland has adapted reciprocal right with regard to Austria's new VAT rules. Thus, companies from third countries (also Switzerland) are excluded from claiming a refund of VAT when purchasing fuels in Austria for invoices from 2021 and later. Consequently, Austrian companies will no longer be able to claim a refund of Swiss VAT incurred on the purchase of fuels in Switzerland.

Read a March 2022 report prepared by the KPMG member firm in Switzerland

 

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