Since January 1, 2021, providers offered to charities are additionally included within the scope of providers within the subject of worldwide growth cooperation and humanitarian support for VAT functions (VAT-sector-info 22, par. 5.3.3).
If the next 4 situations are met, the place of supply for VAT functions is now positioned overseas and the service isn’t topic to inside tax or acquisition tax:
- The contracting establishment pursues a charitable objective and is exempt from direct Swiss federal tax in accordance with artwork. 56 let. g DFTA;
- the service offered to the buying establishment considerations or covers a selected overseas challenge and considerations a predefined area or nation;
- the challenge meets the definition of growth cooperation and humanitarian support in response to the federal legislation on worldwide growth cooperation and humanitarian support;
- the challenge should in a roundabout way or not directly promote or assist the entrepreneurial sphere of the founder or a recurring donor (eg opening up new gross sales markets, launching merchandise or offering promoting providers).
In keeping with previous follow, this particular place of provide rule solely utilized to providers provided on behalf of the federal authorities or to overseas organizations working below statutory provisions.
Companies bought by charities for tasks within the subject of growth cooperation and humanitarian support can now be invoiced by the service supplier with out VAT (respectively, the charity doesn’t must pay tax acquisition of providers acquired from overseas corporations).
Related foundations / humanitarian organizations, and so forth. should due to this fact examine whether or not the said situations are met and, the place relevant, make sure that invoices for providers bought from Swiss corporations arrive with out VAT or invoices from overseas are not taken into consideration for the declaration of the tax acquisition.
Since this alteration is the results of a evaluate of present follow by the Swiss VAT Authority, it applies retroactively to tax intervals that aren’t but legally binding (as much as 5 years again) , within the occasion that he acts in favor of the taxable individual. . As well as, it ought to due to this fact be thought of whether or not a correction of the acquisition tax already declared is feasible and whether or not the service suppliers can situation a corrected bill with out VAT for providers invoiced up to now.