With the publication of VAT Info 11: Reporting Procedure (MI 11) on February 11, 2025, the FTA has implemented significant changes to practice and clarifications that particularly affect real estate transactions. The purpose of this article is to contextualize the new regulations, highlight their implications, and provide recommendations for action.
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With the publication of VAT Info 11: Reporting Procedure (MI 11) on February 11, 2025, the FTA has implemented significant changes to practice and clarifications that particularly affect real estate transactions. The purpose of this article is to contextualize the new regulations, highlight their implications, and provide recommendations for action.
When transferring developed real estate, taxpayers may choose between a sale without an option, a sale with an option, or a transfer under the reporting procedure. However, this freedom of choice does not apply if the reporting procedure is mandatory. The recent changes in practice therefore raise key questions: When is the reporting procedure mandatory? How do the changes affect real estate transactions? And what are the implications for the voluntary reporting procedure and formal requirements?
Notably, the transfer’s taxability is no longer a prerequisite. Consequently, the transfer of individual properties also falls under the mandatory reporting procedure, provided the other conditions are met. This now enables the uniform treatment of tax-neutral restructurings under Art. 19 and 61 of the Federal Tax Act (FTA) in the reporting procedure, but restricts the freedom of choice and increases the risk for the acquiring party, which must then provide evidence of input tax utilization from the period prior to the restructuring.
In addition, the FTA now explicitly refers to the concept of “business” as defined in KS 5a Restructurings. This narrows the definition of total or partial assets. In practice, however, this does not necessarily lead to greater legal certainty, as the criteria—particularly regarding “real estate operations”—can be interpreted differently from canton to canton. The new definition of the tax amount threshold of CHF 10,000 may also increase the administrative burden under certain circumstances.
A positive development is the simplification of the voluntary reporting procedure: if the reference is missing from the contract, the procedure can now be applied retroactively within the filing deadline by means of a declaration and report. This allows for the correction of flawed contract terms and the avoidance of tax consequences related to own use.
Overall, the changes expand the scope of the mandatory reporting procedure but also raise new questions regarding its application. Every real estate transaction must therefore be carefully reviewed for its VAT implications. The correct choice of settlement method and precise contractual implementation remain particularly important.
VAT Sector Information 17 Property Management / Rental and Sale of Real Estate (MBI 17) stipulates in Section 5 et seq. that, in the case of a transfer of developed real estate, a taxable person has the option to choose one of the variants “sale without option,” “Sale with Option,” or “Transfer via the Reporting Procedure.” In the case of a sale with option, the property may be transferred with a full or partial option, provided that the buyer does not use it exclusively for
