While the world is still holding its breath due to COVID-19, the tax calendar proceeds as normal. Before closing your books for 2019, the Swiss Federal Tax Administration requires reconciliation of your VAT figures. What is often perceived as a nice-to-have is an obligation under Swiss VAT law that you must comply with.
During the finalization process for fiscal year 2019 (provided that fiscal and calendar years match), taxable persons are liable to compare annual accounts (audited financials) with the filed Swiss VAT returns of the last fiscal year (i.e. 1 January 2019 to 31 December 2019) pursuant to Art. 72 Swiss VAT Act and Art. 128 Swiss VAT Ordinance. In case the taxable person identifies errors in its VAT returns, an annual corrective VAT return needs to be submitted to the Swiss Federal Tax Administration (SFTA).
Should the taxable person not file any corrective VAT return within 240 days after closing of its accounts (i. e. 30 August 2020 for fiscal year 2019), the SFTA will assume that the reconciliation exercise was duly conducted and that the VAT returns filed are correct. In case of a VAT inspection, the reconciliation working papers are always requested by the tax inspector.
We would be happy to assist you in reconciling your financials with the declared figures and ensuring you can close 2019 in accordance with the requirements of the Swiss VAT law. Please reach out to us!