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VAT Guide For Switzerland - Find out how VAT works in including VAT rates, VAT rules, VAT registration, imports and exports, VAT liability of goods and services and much more. Introduction VAT is a tax on consumption and an important source of revenue for the state. It is paid by consumers but levied on businesses. The price that customers pay for goods and services already includes value-added tax. The business selling the goods or providing the service collects the VAT and gives it to the state. If a business has to buy other products or services (inputs) in order to produce their own goods or provide their own services, it can deduct the VAT paid for them from the VAT it has received from its customers and has to send to the state. This is called an input tax deduction. Rates of VAT There are three different VAT rates in Switzerland: Standard Rate 7.7% - (Services, Alcohol Etc) Special Rate 3.7% - Accommodation services (overnight stays with breakfast) in the hotel and accommodation business (e.g. letting of holiday apartments) are subject to a rate of 3,7 %. Reduced Rate 2.5% applies to: A reduced rate of 2,5 % applies for certain categories of goods and services, particularly: Foodstuffs (except alcoholic beverages) according to the Foodstuffs Act of 20 June 2014 (exception: the normal rate applies for foodstuffs that form part of restaurant services); Cattle, poultry, fish; Seeds, living plants, cut flowers; Grains; Animal feed and fertilizer; Medications; Newspapers, magazines, books and other printed products without advertising character of the kinds to be stipulated by the Federal Council; Electronic newspapers, magazines and books without advertising character of the kinds to be stipulated by the Federal Council; Services of radio and television companies (exception: the normal rate applies for services of a commercial nature). There are also items that are exempt from VAT such as Education, Health, Rent from property Registration Threshold Businesses based in Switzerland - Annual turnover greater than CHF 100,000 must register and pay value added tax. They must register with the Federal Tax Administration and account for their sales annually. When they register, they are given a VAT number. Businesses based outside Switzerland that make sales in Switzerland - Annual turnover greater than CHF 100,000 must register and pay value added tax. They must register with the Federal Tax Administration and account for their sales annually. When they register, they are given a VAT number. Event Organisers - Organisers of one-off sports, cultural or other events (e.g. village or street festivals) are required to charge VAT. This applies if they earn at least CHF 100,000 from the sale of food and drink, advertising, etc. Clubs - Charitable institutions or non-profit associations that are run on a voluntary basis must register for VAT if they have a turnover of CHF 250,000 or more. Switzerland-VAT

Find out how VAT works in Austria VAT including VAT rules, VAT registration, imports and exports and much more. VAT - Ghana VAT - Ghana Austria-VAT Introduction There are three main rates of VAT in Austria, Standard Rate 20% , Reduced Rate 13% and Reduced Rate 10%. VAT Rates VAT Exemptions VAT Return Taxable Supplies Invoicing Reverse Charges Input VAT Deduct

VATDIGITAL.COM - A leading global VAT news and compliance platform providing businesses and individuals with the latest VAT news, compliance guides, industry news and advice. VAT Digital. Com VAT Digital. Com VAT Digital. Com - Advertise or Sponsor us Demystifying VAT Making VAT Simple The idea for VATDIGITAL.COM was conceived out of the need to help Businesses owners, Entrepreneurs and Individuals access useful information and news about VAT easily and quickly from a single platform. The site has evolved and now provides a combination of VAT & GST news, VAT and Tax and specific industry guides, tax tools and other key links in relation to UK and Global VAT compliance. The site has an inbuilt AI driven VAT advisor which allows visitors to obtain detailed answers and guidance for specific queries in relation to VAT and GST 24/7. The site's development and provision of services is ongoing and continually evolving and will be enhanced to reflect key VAT and other general Tax trends. As founder, I hope you find our site informative and useful. Please follow us on Linkedin. Lastly If you would you like to advertise your business on this site or sponsor us, then please email: enquiries @vatdigital.com Anthony Ene - Founder VAT Digital AI VAT advisor online 24/7

Comprehnsive guide for the different VAT rates applicable to various goods and services in the UK, including Health, Transport, Land & Buildings, Education, Charities etc. VAT Rates For Goods & Services Food and Drink Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include: catering alcoholic drinks confectionery crisps and savoury snacks hot food sports drinks hot takeaways ice cream soft drinks and mineral water Restaurants must always charge VAT on everything eaten either on their premises or in communal areas designated for their customers to use, such as shared tables in a shopping centre or airport food courts. In addition, restaurants and takeaway vendors must charge VAT on all hot takeaways and home deliveries, but do not need to charge VAT on cold takeaway food unless it’s to be eaten in a designated area. Animals and animal food Supplies of live animals that are zero-rated You can zero rate the sale, hire or loan or supply of a part interest (a share) of a live animal provided it’s of a kind generally used in the UK, or yielding or producing food for human consumption. Animal includes bird, fish, crustacean and mollusc. Examples of Zero Rated Animals are: meat animals dairy animals poultry (except ornamental breeds), including those for egg production, honey bees fish (except ornamental breeds and coarse fish), including those for production of edible roes Animals that are standard-rated Examples of standard-rated animals are: bumble bees ornamental birds and fish racing pigeons horses Live kangaroos Pets Animals that will be kept as pets can be zero-rated only if they are of a kind that is normally used for human food production. For example, rabbits, other than ornamental breeds, are always zero-rated. Animals kept for non-food purposes Animals kept for non-food purposes can be zero-rated if they are of a kind normally producing food for human consumption. Sheep kept mainly for their wool, or bulls used for breeding are zero-rated. Birds Most breeds of chicken are zero-rated, as are game birds and ostriches. Ornamental breeds of birds are standard-rated. The following breeds of ducks, geese and turkeys are zero-rated: Type of fowl Breed Ducks - Aylesbury, Campbell (Khaki Campbell), Indian Runner, Muscovy, Pekin and derivatives and crossbreeds of these Geese - Brecon Buff, Chinese Commercial, Embdem, Roman, Toulouse and derivatives and crossbreeds of these Turkeys - Beltsville White, British White, Broadbreasted White, Bronze (Broadbreasted Bronze), Norfolk Black and derivatives and crossbreeds of these Fish Freshwater fish - Eels, salmon and trout and others recognised as food for human consumption are zero rated. Bream, perch, pike, carp and tench are standard rated. Shellfish - Oysters, mussels, whelks are zero rated while non food species are standard rated Fish for aquaria -All supplies are standard rated Fish used as bait - Fish of a kind, and fit for, human consumption are zero rated and all other supplies are standard rated. Ornamental fish - for example koi carp Agricultural and horticultural crops Crops covered by the relief All crops that are specifically grown to produce food of a kind for human consumption or animal feeding stuffs are zero-rated. The zero rate also applies to seeds, seedlings, crowns, spores, tubers and bulbs of edible vegetables and fruit. What’s not covered by the relief Any crop that generally produces items that are not fed to humans or animals is always standard-rated. Plants that are primarily grown for their ornamental effect (such as ornamental nursery stock including trees, shrubs, herbaceous plants, alpines and pot plants) are standard-rated. Plants, seeds and fruit of a kind used for the production of perfumes, pharmaceutical products, insecticides, fungicides and other non-food uses are standard-rated. Some examples of plants that are standard-rated are: Evening primrose, because this is grown for the extraction of its oil Tulips and Hyacinths, because these are grown and sold for ornamental purposes Norfolk reed, because this is grown for thatching material Sport, leisure, culture and antiques Betting and gaming — including pool betting and games of chance is Exempt from VAT Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT Lottery ticket sales is Exempt from VAT Online lottery games is exempt from VAT Retailer commission on lottery ticket sales is Exempt from VAT Culture Admission charges by public authorities or eligible cultural bodies to certain cultural events such as visits to museums, art exhibitions, zoos and performances is Exempt from VAT Antiques Antiques, works of art or similar (as assets of historic houses) sold by private treaty to public collections are exempt from VAT Antiques, works of art or similar (as assets of historic houses) used to settle a tax or estate duty debt with HMRC again are exempt from VAT Health, education, welfare and charities Charities Admission charges by charities are Exempt from VAT Advertising services for charities VAT are zero rated Certain goods sold at charitable fundraising events are zero rated Charitable fundraising events are Exempt from VAT Charity shops — selling donated goods is zero rated for VAT Construction and sale of new buildings for a relevant charitable purpose are zero rated for VAT Energy-saving materials permanently installed in dwellings and buildings used for a relevant residential purpose providing the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT) 5% reduced rate VAT applies. Energy-saving materials — supply only — are Standard-Rated (20%) Sponsored charitable events are Exempt from VAT. Voluntary donations to charities are outside the scope of VAT Welfare Building services for disabled people are zero rated for VAT Burial or cremation of dead people, or burial at sea is Exempt from VAT Mobility aids for the elderly, 5% reduced rate VAT applies Equipment for blind or partially sighted people is zero rated Equipment for disabled people is zero rated for VAT Funeral plans written under contracts of insurance are Exempt from VAT Smoking cessation products — nicotine patches and gum, 5% reduced rate VAT applies Welfare services provided by charities at significantly below cost are Outside the scope of VAT Magnetic tape adapted for recording speech for blind people together with apparatus for making and playing the adapted tape and certain low vision aids are zero rated. Health Care or medical treatment provided by a qualifying institution like a hospital, hospice or nursing home are Exempt Dispensing of prescriptions by a registered pharmacist is zero rated for VAT Health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals is Exempt from VAT Incontinence products are zero rated. Maternity pads are zero rated Sanitary protection products are zero rated Low vision aids are zero rated Education Education and vocational training provided by an eligible body other than a ‘private school’. Goods or services closely connected to the education provided by an eligible body like a school, college or university is Exempt from VAT. VAT Notice 701/30 Building and construction Substantial reconstructions to protected buildings that are buildings used as a dwelling, for a relevant residential purpose or for a relevant charitable purpose is zero rated VAT Notice 708 The installation of a bathroom or lavatory, constructing ramps and widening doorways or passageways for disabled people in their own home is zero rated Building services for disabled people Construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose is zero rated. VAT Notice 708 Construction and first freehold or long leasehold sale of a new building for relevant residential purposes is zero rated. VAT Notice 708 Construction and first freehold or long leasehold sale of new domestic buildings is zero rated. VAT Notice 708 Converting existing premises by increasing the number of dwellings within the building, 5% VAT applies. VAT Notice 708 Renovating a dwelling that has been empty for at least 2 years 5% VAT applies. VAT Notice 708 First freehold or long leasehold sale of a commercial building converted into a dwelling or dwellings is zero rated. VAT Notice 708 First freehold or long leasehold sale of buildings converted for relevant residential purposes is zero rated. VAT Notice 708 First freehold or long leasehold sale of buildings converted for relevant charitable purposes is zero rated. VAT Notice 708 Land and property Garages or parking spaces let together with dwellings (under short hold tenancy agreements) for permanent residential use are Exempt from VAT. — VAT Notice 742 Parking — grant, or licence, to occupy land on which incidental parking takes place is Exempt from VAT. VAT Notice 742 Property, land and buildings — grant, or licence, to occupy land or buildings is Exempt from VAT. VAT Notice 742 Sale or long lease of a new dwelling with garage or parking space is zero rated for VAT. VAT Notice 708 Transport, freight, travel and vehicles Transport Aircraft repair and maintenance is zero rated for VAT. VAT Notice 744C Travel Houseboat moorings are Exempt from VAT. VAT Notice 742 Parking spaces or garages supplied with houseboat moorings are Exempt from VAT. VAT Notice 742 Passenger transport in a vehicle, boat or aircraft that carries not less than 10 passengers is zero rated for VAT. VAT Notice 744A Tolls for bridges, tunnels and roads operated by public authorities is Outside the scope of VAT. Privately-operated tolls for bridges, tunnels and roads are standard-rated — VAT Notice 700 Freight Freight transport to or from a place outside the UK is zero rated for VAT. Domestic freight transport is standard-rated, unless it is the domestic leg of freight transport between the UK and another country in which it is zero rated. — VAT Notice 744B Freight containers — sale, lease or hire to a place outside the UK and the EU is zero rated. VAT Notice 703/1 International freight transport that takes place in the UK and its territorial waters is zero rated. VAT Notice 744B Vehicles Aircraft repair and maintenance is zero rated. VAT Notice 744C Airships — sale or charter is zero rated. VAT Notice 744C Caravans (more than 7 metres long or more than 2.55 metres wide) is zero rated or 5%. Taxing holiday caravans Civil aeroplanes — sale or charter is zero rated for VAT. Gliders — sale or charter — are standard-rated as are hot air balloons — VAT Notice 744C Helicopters — sale or charter is zero rated for VAT. VAT Notice 744C Houseboats — sale or let out on hire is zero rated for VAT, But holiday accommodation let in a moored houseboat is standard-rated — VAT Notice 701/20 Military aeroplanes — sale or charter is zero rated for VAT. VAT Notice 744C Ship repairs and maintenance is zero rated for VAT. VAT Notice 744C Shipbuilding — 15 tons or over gross tonnage is zero rated for VAT. VAT Notice 744C Printing, postage, publications — books, magazines and newspapers Printing Brochures is zero rated for VAT. VAT Notice 701/10 Leaflets is zero rated for VAT. VAT Notice 701/10 Pamphlets is zero rated for VAT. VAT Notice 701/10 Postage Direct-mail postal services meeting all the conditions of VAT Notice 700/24 3.2 and 3.3 are Outside the scope of VAT. VAT Notice 700/24 Postage, packing and delivery within the UK included in the sales contract but charged for separately, for example, mail order The same rate as the goods being delivered or posted Postage, packing and delivery within the UK charged as an optional extra is always standard-rated — VAT Notice 700/24 Public postal services provided by the Royal Mail under a universal service obligation are Exempt from VAT. Standard Royal Mail first and second class services for example Other postal services that are not subject to a universal service obligation are Standard-Rated (20%) Supplies that are not subject to regulation Publications Books are zero rated for VAT. VAT Notice 701/10 Children’s painting and picture books are zero rated for VAT. VAT Notice 701/10 Maps and charts are zero rated for VAT. VAT Notice 701/10 Magazines are zero rated for VAT. VAT Notice 701/10 Newspapers are zero rated for VAT. VAT Notice 701/10 Printed or copied music are zero rated for VAT. VAT Notice 701/10 Publications are zero rated for VAT. Some items are standard-rated such as exercise books, letterheads, posters — VAT Notice 701/10 Clothing and footwear, protective and safety equipment Clothing and footwear Babywear is zero rated for VAT. VAT Notice 714 Children’s clothes and footwear is zero rated for VAT. VAT Notice 714 Protective and safety equipment Carrycots with restraint straps, 5% VAT applies. VAT Notice 701/23 Children’s car seats, booster seats and booster cushions , 5% VAT applies. VAT Notice 701/23 Children’s safety seats with bare wheeled framework, 5% VAT applies. Prams and pushchairs are standard-rated (20%) — VAT Notice 701/23 Cycle helmets — CE marked are zero rated for VAT. VAT Notice 701/23 Motorcycle helmets that meet safety standards are zero rated for VAT. VAT Notice 701/23 Protective boots and helmets for industrial use are zero rated for VAT. VAT Notice 701/23 Open Government Licence v3.0

The page provides details of the VAT liability of the sale of Debt, Asset Purchases, Factoring, Asset Based Lending etc. Sale of Debt The sale of a debt is a financial transaction, whereby the purchaser acquires ownership of debts from a creditor, at a nominal sum to the face value of the debts. The purchaser assumes all the rights and obligations of the original creditor and all legal and beneficial or equitable interest passes to the buyer to whom full title and risk is transferred. The purchaser of a debt portfolio may either use an in-house operation to effect recovery or contract with one or more debt recovery agencies for use of their collections services as described in VATFIN3255. Depending on the contractual agreement with the original creditor, the purchaser may sell on all or part of the debts acquired. The purchaser of a debt portfolio has no right of recourse to the seller for un recovered debts except where debts are deemed to be irrecoverable prior to the date of purchase e.g. deceased customers. In some cases the sale contract may allow the purchaser to return these accounts and gain a return of the relevant purchase amount. Unless there is a charge-back agreement for unsupported balances, the purchaser does not return uncollected debts to the original creditor - the purchaser will write off the debts and take the loss. Debt purchase companies may also offer contingency debt collection services as described in VATFIN3255. In the sale of a debt, all legal and beneficial or equitable interest passes to the buyer to whom full title and risk is transferred. Assignment of a debt for purposes of this guidance we distinguish the assignment of a debt from a sale of a debt, in that with an assignment only the equitable interest is passed to the assignee and the assignor retains the legal interest in the debt and any liability to obligations arising from the original contract. Often it will not be possible for the assignee to sell that which has been assigned. The use of the term ‘assignment’ can cause misunderstanding and it is essential to be quite clear as to what is actually happening in any particular set of circumstances. If doubts arise, the VAT Deductions & Financial Services Team should be consulted. Supply and liabilitySale of a debt The sale of a debt is Exempt from VAT under the VAT Act 1994, Schedule 9, Group 5, item 1. Note where the actual customers are purchased by a business also, there will be two distinct transactions namely the purchase of the assets and the purchase of the debt. Input tax incurred by a business chasing debts it has bought relates to a business activity. The input tax incurred by a business for use in making a supply in the course of business may be recoverable subject to the normal rules. For further information on business/non-business see V1-6 - Business/non-business. As the sale of debt is Exempt as mentioned above, the income from the sale will have an impact on an organisation's partial exemption recovery rate. Factoring / Invoice Discounting The term ‘factoring’ covers a variety of services involving debt assignment (often referred to as the purchase of debts), which the factor may provide to clients in respect of debts owing from their trade debtors. The advantages to the client may include some or all of the following: immediate finance (the up-front payment of, typically, 80% of the debt) protection against bad debts sales ledger administration a debt collection service, from initial contact with the debtors through to legal enforcement provision of credit information on customers provision of legal advice and provision of management information. Factoring Products A variety of terms are in use but the products the factor offers his client may include the following: Full Service (also known as non-recourse, old line, main line or traditional factoring): the factor is assigned the debt (which is disclosed to the debtor), opens a line of credit to the client, provides a full sales ledger service, sends debtors notices of assignments, undertakes recovery action and bears the loss if the debtor defaults in certain circumstances. Recourse factoring: as for the Full Service except that the factor does not bear the loss if the debtor defaults but has the right to assign the debt back to the client. Maturity factoring: the non-recourse service but without the provision of the line of credit for an immediate payment on account. Payment in full of the purchase price is made either upon receipt from the debtor or at the end of a fixed ‘maturity period’. This is usually based upon prior overall collection period of the entire ledger. Agency factoring (sometimes known as bulk factoring or agency discounting): the factoring arrangement is disclosed to the client’s debtors; the factor extends the line of credit but does not bear any loss. The client operates his own sales ledger and debt recovery system as the agent of the factor. Invoice discounting (also known as confidential factoring or undisclosed factoring): as for agency factoring but the factoring arrangement is not disclosed to the debtor. Can be with or without recourse. Undisclosed factoring: an invoice discounting arrangement with a limited debt protection facility - the factor agrees to bear a proportion of unrecoverable debts. You may also find further variants of the above. The Factoring Process The factor typically takes an equitable assignment of his client’s debts. This gives him certain legal rights without full legal ownership of the debt; it enables him to pursue the debt and, in the event of the client’s insolvency, gives him preferential rights over the income from the debt. Historically the factor did not take a legal assignment of the debt since this incurred stamp duty. This is likely to continue even though stamp duty has been abolished on the assignment of debts. Under his agreement with the client the factor may act on a recourse or non-recourse basis. In a recourse agreement he will, if the money cannot be recovered from the debtor, reassign the debt back to the client. In a non- recourse agreement the factor will bear the loss in the absence of any breach of the agreement between the factor and his client. The factor opens a client account ( sometimes called a ‘current account’) to which he credits the face value of the debts he has bought and debits his charges (these may be consideration for a number of standard rated supplies of administrative, clerical and accounting services). The balance, less an agreed retention, is available for the client to draw upon. The factor debits to the account any payments to the client and also a finance charge, sometimes described as a ‘discount’, ‘discount charge’ or ‘discounting charge’. Liability - EC law Article 135.1 (d) of the VAT directive specifically excludes debt collection and factoring from exemption: Transactions, including negotiation, concerning … but excluding debt collection and factoring Prior to this, Article 13B(d)(3) of the Sixth VAT Directive specifically excluded both debt collection and factoring from the exemption. When the Directive was recast into its current form however it was agreed that, as factoring was in any event a form of debt collection, it was not necessary to include the words ‘and factoring’ in the new version. Services of factoring and debt collection are therefore liable to VAT at the standard rate. The decision of the ECJ in the appeal of MKG-Kraftfahrzeuge-Factory GmbH (‘MKG’ - C-305/01 ([2003] STC 951) confirmed that the supply of factoring is essentially taxable. In GKFL Financial Services AG (“GKFL”- C-93/10) the ECJ held that an operator who purchases defaulted loan receivables at its own risk and at a price below their face value does not make a supply of services for a consideration for VAT purposes. The ECJ considered whether, as a purchaser of debts, GKFL was providing some form of debt collection service back to the bank that sold the debt (i.e. following the ECJ judgement in MKG – see above) for which the consideration would have being the deduction made from the face value of the debt in calculating the purchase price. The ECJ concluded that GKFL did not receive any consideration from the bank, as the difference between the purchase price of the debts and their face value was merely a reflection of the actual economic face value of the debts at the time of purchase. By contrast, in the case of MKG, the assignee of the debts did make a supply of services to the assignor because it received consideration for those services by way of a factoring commission and a del crede fee. Discount charges Where a factor provides credit in that the client can, as explained above, draw upon the account for which it is charged interest it will take the form of a ‘discount’, ‘discount charge’ or ‘discounting charge’. VAT Treatment is Exempt Administration or Service Charge (This may cover the provision of a full sales ledger management service, credit advice, debt collection service and the provision of management information). VAT Treatment is Standard Rated. . Guarantee of payment. VAT Treatment is Standard Rated. Assignment or re-assignment of debt. Outside The Scope of VAT Electronic transfer of funds (if charged for separately). VAT Treatment is Exempt For the VAT treatment of the ‘discount’ and other factoring related services please see paragraph 5.5 in VAT Notice 701/49 Finance Place of supply A UK factor may rely upon an overseas associate to collect a debt or may provide such services himself within the UK for an overseas factor. To determine the place of supply please see VATPOSS . Partial exemption, bad debt relief and cash accounting The factor will make both taxable and exempt supplies and will therefore be partly exempt. Where he provides significant administrative or accounting services to the client his standard rated supplies will allow him a high input tax recovery. Where, as in invoice discounting, the credit facility is the predominant feature of the agreement his input tax recovery will be lower. Factoring and bad debt relief A factor cannot claim bad debt relief for debts assigned to him by his client. The client cannot claim bad debt relief for a debt assigned to a factor but can do so if the factor re-assigns the debt to him (see VAT Notice 700/18: relief from VAT on bad debts ). Factoring and cash accounting Please see Notice 731 Cash Accounting for details on how to treat the debt for cash accounting purposes. Asset Based Lending Asset based lending is usually operated in conjunction with one of the factoring products (see VATFIN3220 ), except that the amount that the client can draw down can also take into account a percentage of the value of the client’s stock and inventory. Thus funds will be provided against invoices, stock, plant and machinery, land and buildings. Between 65% and 85% will be loaned, depending on the type of item. Lenders in an asset based lending situation have a charge over the above assets that can be invoked in the instance of default. The supply of credit is exempt under the VAT Act 1994, Schedule 9, Group 5, item 2. Sale of Debt and VAT