9 Recovery of input VAT

In principle, the taxable person has the right to deduct any input VAT provided that the purchased goods/ services are connected with the business activity. The VAT Law lists three categories of input VAT that can be deducted by the taxable person in its VAT return (Art. 28 para. 1 VAT Law):

• VAT invoiced by a third party;
• VAT declared in the VAT return in connection with the reverse charge procedure; and
• import VAT paid/due as well as the declared import VAT in case the taxable person applied for the deferment procedure.

Moreover, the taxable person has to prove that the input VAT has been paid (Art. 28 para. 4 VAT Law). For this purpose an invoice with all the relevant information (see also section 10.1) should be held by the taxable person. However, it is also possible to prove by other means that the input VAT has been paid.