An alternative VAT reporting basis, granted by the ESTV on application: VAT is declared for the period in which payment is actually received.
The advantage is cash flow. No VAT falls due on an invoice until the customer has paid, so a business never advances the tax on unpaid invoices. This suits businesses that grant long payment terms or often face late payment. The counterpart is that input VAT can only be deducted once the supplier's invoice has been paid.
Like agreed consideration, it can be combined with any of the reporting methods (effective, net tax rate, flat tax rate).
Also known as: the received consideration method. The official English translation of the Swiss VAT law uses collected consideration. Comparable term elsewhere: cash basis. The Swiss term refers only to when VAT is declared, not to how the books are kept.
Known in French as contre-prestations reçues, and in German as vereinnahmte Entgelte.
