In accordance with art. 152 para. 1 VAT Ordinance, a reciprocal right is given if:
a) companies with their domicile or effective place of business in Switzerland have the right to claim VAT refunds paid on supplies acquired from the foreign jurisdiction, which in scope and restrictions is commensurate with the right of input tax deduction that companies resident in the foreign state have;
b) a tax comparable with the Swiss VAT is not levied by the foreign jurisdiction; or
c) a different type of sales tax is imposed in the foreign jurisdiciton, which affects companies with their domicile or effective place of business in the foreign state in the same way as enterprises with their domicile or effective place of business in Switzerland.
The Federal Tax Administration FTA provides a list of states with which a reciprocal right declaration has been exchanged. If a state is not listed, the applicant may prove otherwise that the requirements according to art. 152 para. 1 VAT Ordinance are met. The FTA will take this evidence into consideration, if the following requirements are fulfilled:
The applicant must furnish proof of registration for VAT purposes in the jurisdiction of residence, stating that one of the conditions mentioned in art. 152 para. 1 VAT Ordinance (lit. a, b or c) is fulfilled in the respective country.
- The confirmation has to be issued in one of the official Swiss languages (German, French and Italian) or in English. If that is not given, an authorized translation into one of the official languages (certified by a notary) must be furnished.
- If – after having examined the facts – the FTA comes to the conclusion that the reciprocal right is granted by the foreign jurisdiction, the VAT will be refunded. The corresponding list will be updated and supplemented at the end of each year.
Further information about the VAT refund is available in German, French or Italian only.