How to minimise VAT costs and maximise opportunities

VAT is a complex area subject to many rules, some of which are country specific, some of which are sector specific and some of which are of general application. Multinational companies typically have internal resources which can assist with VAT planning. TaxPort Switzerland has its own international network of VAT professionals to assist you in this process.

How to anticipate the correct application of VAT?

When considering a new business transaction, whether complex or not, it is necessary to identify the parties who have VAT obligations. TaxPort Switzerland’s recommendation is to start with an analysis of the facts. A single commercial transaction may involve several VAT transactions. For each type of VAT transaction, there are separate rules for determining the place of supply, time of supply, exemptions, etc.

For each stage of a VAT transaction, there are five main questions to consider:

•  Who carries out the commercial transaction and for whom?
• What is the nature of the taxable transaction?
• Where does the transaction take place?
• Is an exemption applicable?
• Which party is liable for VAT?