Swiss VAT calculator

This whitepaper shows how to configure and use the Swiss VAT calculator.

By default the Swiss VAT uses the AOC-based logic except for the following scenario's:

  1. Goods undertaken at a Swiss customs cleared aircraft are exempt for aircraft that have a Swiss proof of export (example: Cabin Cleaning)
  2. Services that are exempt because the recipient is domiciled outside Switzerland (example: Disbursement Fees)
  3. Flights that have diplomatic clearance are exempt for air-side services

Goods undertaken at a Swiss customs cleared aircraft

1. Add the custom value ‘VAT exempt for Swiss proof of export | Yes’ in the edit product screen to indicate that this product is a good undertaken at a Swiss customs cleared aircraft.

2. Add the custom value ‘x | Yes’ in the edit aircraft registration screen to indicate that a Swiss proof of export is available.

3. Add a Cabin Cleaning service to the order and check that the VAT is exempt.

Services where the recipient is domiciled outside Switzerland ('new logic')

Services provided to non-swiss clients are exempt of VAT. FBO One supports two ways to determine if a client should be considered to be domiciled outside of Switzerland.
The preferred, or new, way to define this is introduced in FBO One versions dated 29 April 2014 and newer, and works as follows:
Define a custom property named "Domiciled outside Switzerland". It should have values Confirmed, Not confirmed and Not applicable.
Each client should then be assigned the applicable custom value as follows:
  • Customers known to be domiciled in Switzerland should be assigned Not applicable. They will always be charged VAT.
  • Customers that have sent a written confirmation that they are domiciled outside of Switzerland should be assigned Confirmed. They will not be charged VAT for services that are marked as ‘Is EC reversed VAT applicable'. Not that FBO One will ignore the 'Country for VAT purposes' and the 'VAT Number' fields of the debtor when the custom property  "Domiciled outside Switzerland" exists. Only when it not exists will FBO One use the 'old logic', as shown in the section below.
  • Other customers should be assigned Not confirmed or have no value at all. They will always be charged VAT.

This is how to define the custom property "Domiciled outside Switzerland":

Services where the recipient is domiciled outside Switzerland ('old logic')

In this logic, customers that are non-Swiss will be exempt for services  that are marked as ‘Is EC reversed VAT applicable'. The determination of the non-Swiss status of the customer is different from the new logic described above. In the 'old logic', FBO One considers a customer to be non-Swiss and tax exempt, if the customer has a non-blank VAT number and a country for VAT purposes different than CH.

1. Set the ‘Is EC reversed VAT applicable’ to True in the edit product screen.

2. Set the Charge VAT to use the Swiss VAT calculator and enter a VAT number and select a Country for VAT purposes.

3. The VAT of the disbursement fee should be exempt.

Flights with diplomatic clearance

When a flight has a Swiss diplomatic clearance number, any air-side services are exempt from VAT. The clearance number can be entered in the Create Order and Edit Order screens. See the screenshot below.

Setup

This section describes which configuration the Swiss VAT calculator requires.

 
1. Add a VAT rule group that uses the Swiss VAT calculator.

Note that the VAT settings of the contacts are stored per VAT rule group. So in order to keep those settings, you might need to edit the VAT rule group and not create a new one.

2. Assign the Swiss VAT to the Administration and enable the EC reversed VAT logic.

Note that the Swiss VAT calculator does not apply the default EC reversed VAT logic, but only uses it as a workaround for scenario 2 (Services that are exempt because the recipient is domiciled outside Switzerland)

3. Create a custom value ‘IsSwissProofOfExportAvailable’.

This custom value is checked by the Swiss VAT calculator. Assign it to the Aircraft registration so it appears in the edit aircraft registration screen.

4. Create a custom value ‘IsVATExemptForAircraftThatHasSwissProofOfExport’.

This custom value is checked by the Swiss VAT calculator. Assign it to the Product so it appears in the edit product screen.

 4. Create a custom property 

To enable the VAT exemption for diplomatic flights, setup a custom property named "Swiss Diplomatic Clearance Number", as displayed below.