How do I draw up a VAT statement?

How do I draw up a VAT statement?
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To draw up a VAT statement in Switzerland, companies must calculate the VAT collected on their sales and the deductible VAT on their purchases. The process involves gathering all invoices, calculating the total VAT collected, deducting the VAT paid on purchases, and determining the amount to be paid or recovered from the tax authorities.

What is a VAT statement?

In Switzerland, a VAT statement is a document that enables companies subject to VAT to declare and regularize the VAT they have collected on their sales and the VAT they have paid on their purchases. This statement is mandatory and must be submitted periodically (quarterly or half-yearly, depending on the size of the method chosen) to the Swiss Federal Tax Administration (FTA).

How a VAT statement works

The VAT statement is used to adjust the amount of VAT that the company must pay to the government or that it can reclaim, depending on its activity. It ensures fair taxation and regulates VAT flows between companies and the tax authorities.

It is important to understand the two aspects of VAT: input and output VAT. The VAT collected designates the tax a company charges its customers on the sale of goods or services. The Deductible VAT is the VAT that the company has paid on its purchases (supplies, goods, services) and that it can deduct from output VAT.

Calculating VAT due or VAT credit The statement calculates the difference between input and output VAT.

Example of VAT calculation

The countdown calculates the difference between input VAT and output VAT. If input VAT is higher than deductible VAT, the company must pay the difference to the FCA, to which it has a liability. debt. If deductible VAT is higher than collected VAT, the company has a VAT credit which it can either carry forward to the next period, or claim back.

ABC Company
VAT collected on sales
FTA's website
Deductible VAT on purchases
VAT balance

Counting methods

Depending on your company's invoicing method, the VAT invoicing procedure may vary.

Effective method

The effective settlement method is mainly used by medium-sized and large companies, and requires the following information accurate statement of input and output VAT on each transaction. This statement must be drawn up every three months, and the tax due must be paid at the same time.

Net tax debt method

The net tax liability method is well-suited to small businesses, as it simplifies the settlement process by applying a single tax rate. flat rate to calculate the VAT due, and must be carried out every three months. 6 months. Here, there's no need to calculate the tax due. The net tax liability rate is determined by the FTA, and is adapted to each industry. L'FTA order on the value of net tax debt rates by branch and activity can be consulted on the Confederation's website.

To use this method, your company will need to complete two conditions:

Counting modes

There are two accounting methods for companies subject to VAT: the accounting method based on agreed counter-performance, and the accounting method based on counter-performance received.

Settlement according to agreed consideration

This invoicing method is very popular in Switzerland, and is used by the majority of companies. Companies are obliged to declare VAT as soon as they issue an invoice. invoiceeven if payment has not yet been received. In addition, deductible VAT (VAT paid on purchases) is recoverable on receipt supplier invoices, regardless of the time of payment.

The advantage of this method is that it makes it easier to track VAT through payables and receivables.

Settlement according to services received

With this method, the company declares VAT only when payments are actually received or made. VAT is only declared when the customer has paid the invoice, and then VAT on the purchases is deductible when the company has actually paid its suppliers.

This method can improve cash flow management, as VAT is only paid to the tax authorities once customer payments have been received. However, companies wishing to use this method must obtain a authorization of the Federal Tax Administration (FTA) to use this method.

Frequently Asked Questions

A VAT statement is a document that VAT-registered companies must submit to the Federal Tax Administration (FTA) in order to report the VAT collected on their sales and the deductible VAT on their purchases. It is used to determine whether the company has to pay VAT or whether it can reclaim a VAT credit.

To draw up a VAT statement, you will need the total amount of the tax. VAT collected on sales, the total amount of Deductible VAT on purchases. sales taxable and non-taxable, if you have different VAT rates.

Companies must submit their VAT statements to the FTA quarterly or half-yearly depending on the method chosen.

In the event of late declaration or late payment, the FTA may impose penalties. penalties and interest. It is important to respect deadlines to avoid penalties.

The VAT rates applicable in 2024 are as follows:

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