Overview of the tax rulings of the Swiss Federal Administrative Court published between June 9 - 15, 2025:
- Judgment of June 4, 2025 (A-5831/2024): VAT 2016 to 2020; reduction in consideration, supply, exchange; VAT Group X's main purpose is the production and trade of beverages. It concludes so-called "beverage supply contracts" with hospitality businesses. In these contracts, the latter also undertake to purchase and serve beverages (purchase and serving obligation). They can purchase the beverages directly from X or from agreed third-party suppliers. In the first case, they pay the purchase price to X, in the second case to the third-party suppliers. X grants the hospitality businesses discounts depending on the quantity purchased. In the case of purchases from third-party suppliers, X always pays the discounts to the hospitality businesses as an annual sales rebate. X also provides the hospitality businesses with which it concludes beverage supply contracts with items on loan (e.g. dispensing equipment, refrigerators). It was not disputed that sales refunds for direct purchases were rightly treated by X as reductions in remuneration (Art. 41 para. 1 VAT Act). However, the Federal Administrative Court shared the view of the FTA that the sales refunds for purchases from third-party suppliers did not constitute a reduction in consideration, but rather a consideration for the obligation to purchase and serve. The Federal Administrative Court also shared the view of the FTA that the loans were neither dependent ancillary services for the supply of beverages (Art. 19 para. 4 MWSTG) nor advertising gifts (Art. 31 para. 2 let. c MWSTG), but were also made in exchange for the obligation to purchase and serve beverages (Art. 24 para. 3 MWSTG). Dismissal of the taxpayer's appeal.
