Value Added Tax (VAT) is a self-assessment tax. This means businesses are responsible for ensuring their VAT returns are correct. The Swiss Federal Tax Administration (SFTA) is entitled to review these returns retroactively. A VAT audit is therefore not an exceptional event, but part of the VAT reporting system—and often a moment of truth for accounting and internal processes.
1. In a Nutshell
The Federal Tax Authority has the right to audit your VAT returns within the statutory limitation period. The aim is to verify the formal and substantive accuracy of your accounting records, as well as the completeness of declared turnover and input tax. Your goal is to get through the audit cleanly and ensure your company does not end up on the “frequent audit” list.
2. Key Takeaways
The Federal Tax Authority does not only review numbers, but also the structure and completeness of your records. Auditors will check, among other things, turnover, input tax deductions, deemed supplies/self-supplies, supplies to related parties, and the overall quality of bookkeeping.
If deficiencies are found, the TA may estimate turnover—often with unpleasant financial consequences. The outcome is documented in an assessment notice, which becomes binding unless it is challenged.
3. Planning and Timing Essentials
A VAT audit is usually announced well in advance. What matters most is how prepared a business is:
- Are the accounting records and supporting documents clean and complete?
- Are input tax adjustments correctly calculated?
- Have special topics such as private-use portions or mixed use been handled correctly?
During the audit, corrections are typically discussed on an ongoing basis—this is the best opportunity to explain circumstances and submit additional documentation. After receiving the assessment notice, the rule is: if you disagree, you should request a formal ruling and make payments only under reservation, in order to keep legal remedies open.
4. Why This Matters to me
- Lower financial risk: Good preparation reduces additional assessments and late-payment interest.
- Legal certainty: Those who consciously accept the assessment notice—or challenge it correctly—retain control over the process.
- Better processes: A VAT audit often reveals weaknesses, making it a valuable opportunity to improve internal procedures sustainably.Conclusion: A VAT audit is not a disaster. It is a useful stress test. Those who do their homework will pass it with confidence.
