Sales tax - quarterly review of sales tax obligation indispensable despite approval of annual settlement

The turnover tax is due on the transfer of ownership of taxable documents for consideration, provided that a contracting party or an intermediary is a securities dealer. In particular, corporations whose taxable certificates have a book value of more than CHF 10 million are also deemed to be securities dealers.

Pursuant to Art. 24 of the FTA, the form for settling the sales tax must be submitted and the sales tax paid within 30 days of the end of the respective business quarter. In order to avoid disproportionate efforts, the FTA allows, upon request, the annual statement with due date within 30 days after the end of the calendar year. At present, companies with a turnover tax of a maximum of CHF 5,000 per year can settle annually.

Taxpayers who owe sales tax in excess of CHF 5,000 due to transactions in one quarter or after several quarters have elapsed despite approval for an annual statement must take action and still declare and pay the sales tax in the quarter concerned. In these cases, the sales tax is due 30 days after the end of the corresponding financial quarter, which may result in interest on arrears. The quarterly review of the sales tax is therefore essential, even if an application for annual settlement has been approved, in order to avoid the consequences of default interest.

In the following year, an effect trader with an approved application can again settle annually, provided that the turnover tax owed per calendar year is (probably) less than CHF 5,000.