Swiss annual VAT reconciliation: an overlooked and underestimated compliance obligation for Swiss VAT registered persons!

By optimizing VAT processes, businesses can achieve significant cost savings and improve their financial performance.

As per the Swiss VAT Law and VAT Ordonnance, any person registered for Swiss VAT is required to comply with various VAT compliance obligations in Switzerland. Among these, one critical but often underestimated requirement is the annual VAT reconciliation of turnover and input/import VAT.

This obligation stated in the article 72 of the Swiss VAT Law and the article 128 of the Swiss VAT Ordinance requires any VAT registered person (Swiss or foreign entity) in Switzerland to annually reconcile the turnover and input VAT amounts reported in their VAT returns with their financial figures/records e.g. financial statements.

Any discrepancies identified during such exercise should generally be declared and reported via the submission of a 5TH VAT return. In principle, the deadline for performing the annual Swiss VAT reconciliation exercise and filing the 5th VAT return (if required) is 240 days after the end of the fiscal year i.e. by 31 August of the following year.

Our experience confirms the critical importance of providing meticulous VAT reconciliation documentation during VAT audits. Well-prepared/detailed files are highly valued by tax inspectors and:

Minimize the risk of challenges by the SFTA-VAT;
Ensure early detection and timely correction of VAT discrepancies;
Facilitate compliance, reducing financial and operational risks.

How we can help: annual Swiss VAT reconciliation, the opportunity to optimize your Swiss VAT compliance obligations

RSM Switzerland offers tailored support for annual Swiss VAT reconciliations and the preparation of 5th VAT return (if needed). Our expertise ensures:

Customized support to meet the unique requirements of each business, providing valuable insight into your VAT position and giving clear visibility of your VAT situation.
Optimized VAT processes to minimize risk and administrative burden.

Beyond annual Swiss VAT reconciliation, our Swiss VAT team is dedicated to help our clients and provide comprehensive support for all Swiss VAT needs/issues, ensuring compliance with the Swiss VAT Law.

RSM Switzerland would be pleased to assist you accordingly. Should you require our support, please do not hesitate to reach out to our VAT team.