In principle, value added tax is imposed on five types of economic
transactions, namely: - The delivery of objects
in Liechtenstein in return for payment
- Services rendered in
Liechtenstein in return for payment
- In-house consumption
- The
procurement of services from abroad
- The import of objects
Value
added tax applies if commercial or professional self-employment generates earnings and the total annual
turnover of domestic deliveries, services, and private consumption exceeds 75,000 Swiss francs. In
accordance with the nature of the value added tax as a consumption tax paid by the consumer, the business
subject to value added tax is eligible to deduct previously paid value added tax. This deduction entails
that the business must only pay tax on its “added value”, i.e., the business can in general apply all
value added tax paid to its suppliers and contractors as previously paid value added tax. The
deduction of previously paid value added tax therefore reduces the tax due to the Liechtenstein Fiscal
Authority. Strongly export-oriented businesses may even generate a credit with the Liechtenstein Fiscal
Authority, since the law exempts foreign transactions from tax. The
tax rate is in general 7.6% for all transactions subject to value added tax. This general tax rate always
applies if the transaction is not subject to the reduced rate of 2.4%. A special tax rate of 3.6% applies
to lodging services. Certain transactions are exempt from value added tax, especially charitable, cultural,
educational, and religious transactions. The value added
tax is to be assessed by the taxpayer, i.e., the taxpayer must account for all transactions and previously
paid value added tax and must pay the assessed tax to the Liechtenstein Fiscal Authority without being
requested. Value added tax  | 
