Overview of tax law decisions by the Swiss Federal Administrative Court published between August 2 and 9, 2026:

  • ‍Judgment of July 21, 2026 (A-6994/2025): Direct Federal Tax 2020–2021; Determination of the Place of Assessment; At the end of October 2020, a real estate company relocated its registered office from the place of residence of its two board members in the Canton of Zurich to the Canton of Appenzell Ausserrhoden, where it maintains only a letterbox address; at the taxpayer’s request, the Federal Tax Administration (FTA) declared the Canton of Appenzell Ausserrhoden to be the competent jurisdiction. The Federal Administrative Court (BVGer) upheld the appeal filed by the Zurich Cantonal Tax Office and, based on the office infrastructure available at the directors’ place of residence, the lack of evidence of management activities at the registered office, and the mail forwarding to Zurich, deemed it highly probable that the company was in fact managed in Zurich. If the place of actual administration conflicts with a mere mailbox address, the Federal Administrative Court generally gives priority to the former. The appeal filed by the Zurich Tax Office was upheld.
  • Judgment of May 19, 2026 (A-6720/2025): VAT ; Rentals; Tax Periods 2015–2019; In the present case, the appellant made the vehicles available exclusively for private use. The lower court was therefore required to make an estimate based on its discretion in accordance with the law and to use the third-party price as the (notional) tax base; contrary to the appellant’s view, no significant errors of discretion can be identified in the depreciation rates of 4% of the cost of the business premises that were applied; In the present case, the appellant is deemed to have partially prevailed, as she prevailed with respect to the 2015 tax period due to the statute of limitations and with respect to the sale of a vehicle; partial granting of the taxpayer’s appeal and remand to the lower court.
  • Judgment of July 27, 2026 (A-661/2026): Value-Added Tax 2019–2022; Improper Service; In connection with an audit, the FTA requested documents from the taxpayer twice, with copies sent to the trustee. In a letter dated April 22, 2024, the taxpayer submitted the requested documents and brought to the ESTV’s attention that the two letters had been served at an incorrect address and that she had been informed of this by the trustee. The ESTV was requested to serve any further correspondence at the correct address listed in the Commercial Register or to address it to the trustee. However, the FTA subsequently failed to comply. It sent further requests for documentation, the audit findings, and the assessment notice to the incorrect address, without sending a copy to the trustee. For this reason, the taxpayer was not made aware of them. The FTA did not take into account the documents that had already been submitted. Since payment was not made, the FTA initiated debt collection proceedings. The taxpayer filed an objection, which the FTA dismissed by decision dated March 20, 2025—again served at the incorrect address. After a notice of impending bankruptcy was served on the taxpayer at the correct address, she lodged a complaint with the FTA regarding the procedure. The ESTV treated this as an objection and, in its decision on the objection dated December 11, 2025—sent to the correct address—declined to consider it, without complying with the taxpayer’s request to forward the various pieces of correspondence that had been sent to the incorrect address. In a letter dated December 18, 2025, the taxpayer again requested that the FTA forward the incorrectly delivered documents to her. The FTA did not comply until a letter dated January 5, 2026, which was served the following day. On January 27, 2026, the taxpayer filed an appeal with the Federal Administrative Court (FAC) against the objection decision, asserting that it was null and void. On the same day, the taxpayer also filed an objection with the FTA against the decision of March 20, 2025. The Federal Administrative Court concludes that, while the decision is not null and void in the present case, the taxpayer should not suffer any disadvantage as a result of the repeated improper service (Art. 38 of the Administrative Procedure Act). The decision of March 20, 2025, was not properly served until January 6, 2026. The decision on the objection must be set aside, and the FTA must process the timely objection filed on January 27, 2026, and ensure the taxpayer’s right to a fair hearing in the proceedings. The taxpayer’s appeal is partially granted.
  • Judgment of July 24, 2026 (A-4856/2025): Radio and television reception fees; household fee; decision of June 11, 2025; According to case law, however, a remedy for a violation of the right to a fair hearing—provided it is not particularly serious—is possible in exceptional cases if the affected person is given the opportunity to present their case before an appellate body that is free to review both the facts and the legal situation. The complainant’s appeal is dismissed.

Administrative Assistance:

Updates:

  • A-4207/2023 (Administrative Assistance; Decision overturned by the Federal Supreme Court in its judgment of June 18, 2026 (2C_651/2024))
  • A-8680/2025 ( Administrative Assistance; In its decision of July 17, 2026, the Federal Supreme Court declined to hear the appeal (2C_412/2026))
  • A-8023/2024 (Administrative Assistance; appealed to the Federal Supreme Court)
  • A-2226/2024 (Administrative Assistance; appealed to the Federal Supreme Court)
  • A-1450/2025 ( VAT 2020–2021); Subsidies/Cost-Compensation Payments; Decision upheld by the Federal Supreme Court in its judgment of July 17, 2026 (9C_596/2025))
  • A-1745/2025 (Liquor Tax; 2023/2024 Annual Return; Decision upheld by the Federal Supreme Court in its judgment of July 9, 2026 (9C_507/2025))
  • A-235/2026 (Administrative Assistance; In its decision of July 21, 2026, the Federal Supreme Court declined to hear the appeal (2C_393/2026))

Decisions are listed chronologically by publication date.

Tax topics covered in this post:
Treaties
International Tax
Value Added Tax (VAT)
Profit Tax
Capital Tax
Other Taxes