- Swiss VAT audits are increasing and becoming more data-driven, with higher financial impact due to a 4.75% default interest rate in 2026.
- Key audit risks include mismatches between financial accounts and VAT returns, missed reverse-charge VAT on foreign services, and weak input tax deduction documentation.
- Other common issues are private use adjustments, misclassification of donations/subsidies/sponsoring, and VAT treatment of intra-group recharges.
- Export transactions, proportional input VAT reductions for exempt supplies, and restructuring/asset transfer procedures are closely scrutinized.
- Companies must maintain strong digital audit trails, correct ERP VAT coding, and compliant electronic archiving to avoid major adjustments.
Source: rsm.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
