1.3 VAT grouping

Legal entities (in particular, juristic persons, partnerships and natural persons) established in Switzerland or having a branch in Switzerland can apply to be considered a single taxable person (so-called VAT group) for the imposition of Swiss VAT provided that all the entities are under the uniform control of one legal entity (Art. 13 VAT Law). Also legal entities without business activity can be included in the VAT group. Legal entities established outside Switzerland cannot be part of the VAT group.

All supplies of goods and services of the VAT group members performed to third parties are treated as being carried out by the VAT group. On the other hand, all the supplies of goods and services within the VAT group will not be subject to Swiss VAT.

As long as the members belong to the VAT group, they are jointly and severally liable for payment of the VAT debts of the group.