Overview of the tax rulings of the Swiss Federal Administrative Court published between March 10 - 16, 2025:
- Judgment of March 03, 2025 (A-2791/2023): VAT; supplies to closely related persons, input VAT deduction, mixed use (2014 - 2017); The present case concerns offsetting in connection with the calculation of the rental fee for a second vehicle and the third-party price calculation for a vacation apartment. The appellant rented out a vacation apartment exclusively to a closely related person for CHF 10,000 (incl. VAT) per year during the tax periods in dispute. After a detailed examination, the Federal Administrative Court came to the conclusion that the third-party price calculation for the vacation apartment was an estimate that was contrary to its duties. The lower court had to determine the third-party price for the rental of the disputed vacation apartment in accordance with published practice. The appeal is therefore upheld on this point. As far as the VAT treatment of the vehicles is concerned, it is undisputed that the vehicles in dispute were provided to the appellant's board members free of charge for their private purposes and that the requirements for a discretionary assessment are readily met. On this point, too, the court comes to the conclusion that a recalculation is necessary when determining the private shares for the private use of the vehicles in dispute. The appeal is also upheld in this respect. The objection decision of the Federal Tax Administration is annulled and the matter is referred back to the Federal Tax Administration for a new assessment.
- Judgment of March 04, 2025 (A-2792/2023): VAT; input VAT deduction, supplies to closely related persons (2014 - 2017); The present case concerns the VAT treatment of works of art provided by the appellant to its shareholders, namely a rock crystal and an oak base. In the following, we will examine whether the lower court made its assessment in accordance with its best judgment. In doing so, it will be examined whether the lower court's valuation already appears to be in breach of duty in the context of the examination to be carried out by the Federal Administrative Court with the necessary restraint. The court finds that the lower court acted in breach of duty in determining the rent for the disputed items in line with the third party price. The appeal is upheld and referred back to the lower court for recalculation.
- Judgment of March 3, 2025 (A-6284/2024): VAT (2018 - 2020); In this case, it is disputed whether the services of A. AG fall under the concept of brokerage within the meaning of Art. 21 para. 2 no. 19 lit. e VAT Act and are therefore exempt from tax or whether they are taxable services. The FTA takes the view that the specific services provided by A. AG consisted of helping various companies to find (new) investors. The services of A. AG would therefore include the promotion of the company's products as well as the introduction, maintenance and support of customer contacts. There is therefore no independent brokerage activity. According to Federal Supreme Court case law, brokerage exempt from tax pursuant to Art. 21 para. 2 no. 19 lit. a - e of the VAT Act exists if a person causally works towards the conclusion of a contract in the area of money and capital transactions between two parties without being a party to the brokered contract and without having a vested interest in the content of the contract. The contracts described show that A. AG cultivates and acquires existing and new contacts and draws their attention to opportunities to invest with its clients. The activity of A. AG is therefore to be qualified as a brokerage activity exempt from tax in accordance with the case law of the Federal Supreme Court. A. AG's appeal was upheld.
- Judgment of March 4, 2025 (A-2297/2024): Radio and television; household fee; the party liable to pay the fee does not justify its assertion that it does not owe a radio and television fee, despite being granted the opportunity to improve. The levies charged and the elimination of the objection stand up to federal law. In summary, the appeal proves to be unfounded. Dismissal of the taxpayer's appeal.
Administrative Assistance:
Decisions are listed chronologically by publication date.
