Commercial producers are liable to pay a tax on the entire amount. They produce more than 200 litres of pure alcohol a year. Converted to alcoholic consumption strength - e.g., to 40% by volume - this amount corresponds to 500 litres of spirits. Those who do not own a distillery leave their raw material for processing by a commercial distillery.
Most producers in Switzerland fall into this category. They do not run a farm, and the spirits produced during the year amount to no more than 200 litres pure alcohol. They are liable to pay a tax on the entire amount. However, the law foresees a tax benefit. At present it amounts to 30% of the standard rate and is granted annually for no more than 30 litres pure alcohol per household. The premise is the processing of only one's own domestic crop or domestic wild growth harvested on one's own.
Farmers process only produce cultivated from their own soil or wild growth harvested domestically. Those who do not own a distillery leave their raw material for processing by a commercial distillery. Spirits used by farmers on their farms are undamentally tax-exempt. The maximum permissible amount is calculated individually each year by the Alcohol and tobacco division (A AT) based on the acreage cultivated, number of workers, and number of standard trees. Farming operation data of the Swiss Federal Office for Agriculture (FOAG) form the basis for this calculation. Spirits used outside the house and farm are liable for the corresponding taxes.
Tax assessment occurs largely in accord with the principle of self-declaration. Farmers are subjected to commercial inspection in case of annual production exceeding 200 litres pure alcohol.