The 2010 VAT reform – Evaluation of the impact on the Tax Administration and taxpayers

Federal Tax Administration

Key facts

Value added tax (VAT) is the most important source of receipts for the Confederation. In 2015, approximately CHF 22.5 billion flowed from 361,000 taxpayers into the federal coffers. The Federal Council wanted to simplify the tax system with the 2010 VAT reform but without affecting tax revenue. The maximum turnover for the net tax method was thus increased from CHF 3 million to CHF 5 million. Moreover, the position of the taxpayer according to procedural law was improved by means of various measures. These include, for example, the definitive effect of tax audits, the shortening of the absolute limitation period from 15 to 10 years and renewed criminal law. The administrative burden on companies was also to be eased. However, Parliament did not carry out any further simplifications in the reform by way of a standard rate or the abolition of exceptions.