• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/4/2014

Switzerland - Manage risks of trading companies’ indirect tax exposure 

April 4:  Indirect taxes (notably VAT) have been identified as an area of risk for trading companies. For instance, trading companies may be involved in complex supply chains that have indirect tax consequences (e.g., VAT registration obligation, and input VAT credits refunded after months/years by the local authorities).

Traders / operators may effectively manage the indirect tax risk by:

  • Being aware of indirect tax consequences
  • Implementing a framework with clear guidelines (e.g., countries / trades that may need to be avoided for lack of VAT numbers)
  • Using simplified but comprehensive decision-tree models to identify potential indirect tax consequences
  • Maintaining a list of rules available for each country to allow for trades with limited indirect tax risks (e.g., VAT warehouse, limited fiscal representation)
  • Providing for robust clauses in contracts
  • Having several VAT numbers in place that traders can use

Read an April 2014 blog posting by the KPMG member firm in Switzerland.

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now