Art. 77

(Art. 37 para. 1–4 VAT Act)

1. The taxable supplies made for consideration on Swiss territory must be considered in assessing whether the conditions under Article 37 VAT Act are fulfilled.
2. The net tax rate method may not be chosen by taxable persons who:
   1. may report using the flat tax rate method under Article 37 paragraph 5 VAT Act;
   2. use the transfer procedure under Article 63 VAT Act;
   3. use group taxation under Article 13 VAT Act;
   4. have their place of business or a permanent establishment in the valley areas of Samnaun or Sampuoir;
   5. ¹ generate more than 50 per cent of their turnovers from taxable supplies to another taxable person who reports using the effective method where the persons involved are under the same management;
   6. ² make supplies on Swiss territory based on Article 7 paragraph 3 VAT Act.
   7. ³ are deemed to be suppliers in accordance with Article 20a of the VAT Act;
   8. ⁴ have their place of business abroad.
3. Taxable persons who report using the net tax rate method may not opt for the taxation of supplies under Article 21 paragraph 2 numbers 1–24 and 27–31 VAT Act. If the tax is nevertheless invoiced, the tax charged must be paid to the FTA with reservation of Article 27 paragraph 2 VAT Act.⁵