Interest on default and remuneration

Measures in relation to coronavirus

From 20 March 2020 until 31 December 2020, no default interest shall be due for late payment. This provision is to be understood as meaning that between 20 March 2020 and 31 December 2020 the default interest rate is 0%. During this period, this zero rate will apply to all VAT claims, including those arising before 20 March 2020. (Measures due to the coronavirus). The rate of interest on remuneration remains 4 %. 

 

Default interest

  1. Interest for quarterly and half-yearly invoice(s)
    If tax due for a reporting period is paid after the due date under Art. 86 para 1 VAT Act (end of the reporting period + 60 days), default interest is payable without a reminder (Art. 87 para 1 VAT Act). The date from which the Main VAT Division could have had the tax amount is shown on the invoice. Interest is payable in all cases regardless of the reason for the delay, this includes cases where the Main VAT Division granted an extension. In order not to have to pay default interest in the case of an extension, the Main VAT Division recommends making a payment on account for the amount of the probable tax due before the due date (end of the reporting period + 60 days). The interest aims to ensure equality with taxpayers who pay the tax by the due date.

  2. Interest concerning supplementary invoice(s)
    In accordance with Art. 87 para 1 VAT Act, default interest is due if the tax made payable in a supplementary invoice is not paid until after the due date. When these receivables concern multiple tax periods, the due date, known as the "average due date", refers to the periods in which tax should have been paid. The interest is therefore to be calculated for the time period from this due date (tax falling due) until the payment is received in the Main VAT Division's account.

  3. Interest due to retroactive entries
    If registration as a taxpayer is not made within the prescribed time limit, the Main VAT Division must enter persons liable to pay VAT into the register retrospectively; this must be done back to the date provided in the letter of entry. In this case, a retrospectively registered person's first value added tax return (VAT return) will mostly likely contain multiple expired tax periods. In such cases, tax on deliveries and services provided as well as own use, is not payable from the date in the entry letter, instead it is due from the value date provided in the upper part of the VAT return form. This value date, also known as the "average due date" is determined according to the tax periods for which tax should have been paid. The interest is therefore calculated for the time period from this value date until the payment is received in the Main VAT Division's account.

 

Refund interest

Time limit for refunding a credit balance in favour of the taxpayer

A taxpayer's credit balance is offset again his or her tax liability or, when there is no tax liability, the credit balance is refunded. Refund interest is paid from the 61st day until the refund is made in the case of delayed refunds which are unfounded. The payment address and any changes must be provided in writing to the Main VAT Division, together with a payment slip.

 

Interest rate

Amount of interest on default and remuneration

The interest rate for interest on default as well as remuneration interest is based on the Ordinance of the Federal Department of Finance on Interest and on the Ordinance of the Federal Council of 20 March 2020 on the temporary waiver of interest on default in the event of late payment of taxes, incentive taxes and customs duties and waiver of the loan repayment by the Swiss Association for Hotel Credit.

 
 
Default interest
From date Interest rate
20 March 2020 until 31 December 2020  0.0%
1 January 2020 until 19 March 2020
4.0%
1 January 2010 to 31 December 2011 4.5%
1 January 1995 to 31 December 2009 5.0%
1 July 1990 to 31 December 1994 6.0%
to 30 June 1990 5.0%
Refund interest
From date
Interest rate
From 1 January 2012 4.0%
1 January 2010 to 31 December 2011 4.5%
1 January 1995 to 31 December 2009 5.0%

Last modification 27.03.2020

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