VAT and deduction of input tax

Value added tax and input tax are not always easy to calculate. Here is a guide using a concrete example.

The added value chain from import of fabric to the manufacture of clothing to the store (all values in CHF):

The importer sells fabric to the clothing factory (example: if the value of the imported goods is CHF 5,000, a VAT of CHF 400 is invoiced).

Market value

10,000

+ 7.7% VAT

770

Invoice amount

10,770

Importer’s VAT declaration

Total VAT

770

less input tax

  - 385

The importer pays VAT

  385
The clothing factory makes the clothes and delivers them to the store Market value 30,000
+ 7.7% VAT 2,310
Invoice amount 32,310
VAT declaration of the clothing factory Total VAT 2,400
less input tax   - 770
The clothing factory must pay VAT in the amount of   1,540
The store sells clothes to the customers Market value 70'000
+ 7.7% VAT 5'390
Invoice amount 75'390
Store’s VAT declaration Total VAT 5'600
less input tax   - 2'310
The store must pay VAT in the amount of   3'080

Informations

Contact

Administration fédérale des contributions
Eigerstrasse 65
3003 Berne

Tél. +41 58 46 271 06
Fax: +41 58 46 273 49

Last modification 22.08.2018

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