Overview of the tax law decisions of the Swiss Federal Administrative Court published in the week of 15 - 21 June 2020.
- Judgments of 3 June 2020 (A-7395/2018), 3 June 2020 (A-7396/2018) and 3 June 2020 (A-7384/2018): VAT; ancillary service; tax rate (2011-2014); in the present cases, the entry to the indoor/wellness pool, which was included in the price of the hotel accommodation, does not qualify as an ancillary service and therefore cannot be charged at the special rate; dismissal of the taxpayer's complaints.
- Judgment of 27 May 2020 (A-5789/2018): Reference tax 2010 - 2012 (new VAT law). The appellant (Zurich branch) has insurance activities and is part of an international group. As an insurer, the branch realised tax-exempt insurance transactions and was therefore not registered as a VAT payer for domestic tax purposes. In the tax periods in dispute, it received taxable services from the foreign Group service company, whereby it partially paid the subscription tax (portion which, in its opinion, was not used for the exempted insurance agency activities). Insurance agents or insurance brokers act as intermediaries between insurers and policyholders for the conclusion of contracts; they thus bring those parties together. In practice, an insurance agent's activity is when someone acts as an intermediary on behalf of insurers to conclude insurance contracts for a commission. This is not the case in the present case, although the purchase tax is due on all services. There is also no indirect representation, whereby the complainant is deemed to be the recipient of the services mentioned. Rejection of the complaint.
- Judgement of 27 May 2020 (A-5786/2018): Purchases of services from abroad; 2008-2009 (old VAT law). The complainant (Zurich branch) has insurance activities and is part of an international group. As an insurer, the branch realised tax-exempt insurance transactions and was therefore not registered as a VAT payer for domestic tax purposes. In the tax periods in dispute, it received taxable services from the foreign Group service company, whereby it partially paid the subscription tax (portion which, in its opinion, was not used for the exempted insurance agency activities). Insurance agents or insurance brokers act as intermediaries between insurers and policyholders for the conclusion of contracts; they thus bring those parties together. In practice, an insurance agent's activity is when someone acts as an intermediary on behalf of insurers to conclude insurance contracts for a commission. This is not the case in the present case, although the purchase tax is due on all services. There is also no indirect representation, whereby the complainant is deemed to be the recipient of the services mentioned. Rejection of the complaint.
- Judgment of 3 June 2020 (A-703/2019): Customs tariff (Advent calendar with chocolate); the basis of assessment is not the net mass of the chocolate pralines, but also the weight of the printed box with doors and the plastic insert, since these are to be classified as composite goods; dismissal of the complaint lodged by the person liable to pay the duty
Decisions in the field of administrative assistance:
- Judgment of 25 May 2020 (A-3785/2018): Administrative assistance double taxation agreement Switzerland - France (DTA CH-FR); the appeal is dismissed.
- Judgment of 9 June 2020 (A-6037/2018): Administrative assistance double taxation agreement Switzerland - France (DTA CH-FR); the appeal is dismissed.
- Judgment of 9 June 2020 (A-3002/2018): Administrative assistance double taxation agreement Switzerland - France (DTA CH-FR); the appeal is dismissed.
Decisions are listed chronologically by publication date.
