"The Value Added Tax Act of the Principality of Liechtenstein, Part 2"

The Principality of Liechtenstein and Switzerland work closely together in the area of value added tax (VAT) and strive for uniform practice. A joint commission consisting of representatives from both countries deals with issues relating to the interpretation and application of the agreement. Tax is collected in accordance with the VAT agreement: Liechtenstein collects the tax for persons resident in the country, while the Federal Tax Administration (FTA) does so for the rest of the territory. A pool system manages the VAT income in order to compensate for liquidity bottlenecks. An exchange of information between the tax authorities ensures correct assessment. Although there are differences in practice, such as specific publications and the Liechtenstein tax administration's access to further tax data, both countries strive for a common practice, supported by court rulings. Changes in Swiss practice or legislation have a direct impact on VAT regulations in Liechtenstein.

Topics in the publication

• Cooperation between Switzerland and Liechtenstein in the area of VAT
• Distribution of VAT income
• Practice of the Liechtenstein tax administration
• Exchange of information between the tax authorities
• Influence of court rulings
• Specific publications and forms
• Current developments and outlook