- Since January 1, 2025, new correction mechanisms apply when switching between the effective VAT method and the flat-rate (SSS) method, complicating such changes and potentially causing additional costs.
- The revised VAT ordinance (MWSTV) requires repayment of previously claimed input tax at current value when switching from the effective to the SSS method, and allows input tax deduction when switching in the opposite direction.
- These correction mechanisms also apply in the notification procedure (Meldeverfahren) when assets are transferred between taxpayers using different accounting methods.
- If the buyer can prove the seller’s actual input tax claims, corrections are based on those amounts; otherwise, the correction is calculated on the entire purchase price (8.1%).
- The changes aim to reduce tax planning opportunities with the SSS method and refocus on simplified tax accounting, despite opposition from major stakeholders.
Source: graffenried-treuhand.ch
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.
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