Decisions of the Swiss Federal Administrative CourtCW 35 - 2025)

Overview of the tax rulings of the Swiss Federal Administrative Court published between August 25 - 31, 2025:

‍Judgmentof August 8, 2025 (A-5308/2023): VAT 2015-2018; discretionary assessment; The operator of a snack restaurant was unable to provide substantial evidence that the FTA's discretionary assessment was not lawful. This was particularly because the FTA correctly took into account the weight loss in the preparation of meat. Dismissal of the taxpayer's appeal.
Judgment of August 8, 2025 (A-5307/2023): VAT 2015-2018; discretionary assessment; the operator of a snack business was unable to provide substantial evidence that the FTA's discretionary assessment based on profit margins of comparable businesses was not lawful. Dismissal of the taxpayer's appeal.
Judgment of August 13, 2025 (A-620/2024): VAT, subjective tax liability 2015-2019: In this case, it was disputed whether a simple partnership existed and whether the complainant had made supplies within the meaning of the VAT Act to the same. The appellant was of the opinion that it had founded a simple partnership together with a cooperation partner and that it did not make any taxable supplies to this partnership - with the provision of employees free of charge - as it was only entitled to half of the profit share (non-remuneration) from the joint market cultivation. The FAC affirmed the existence of a simple partnership, but saw a taxable supply relationship between it and the simple partnership, as they were closely related persons and a supply that would normally only have been provided for a fee. Partial approval of the taxpayer's appeal with regard to the simple partnership, dismissal of the appeal in all other respects and referral back to the lower court to determine the remuneration at its own discretion.
Judgment of August 14, 2025 (A-2713/2024): VAT; Discretionary assessment 2016 - 2020; The obligations of the person liable for VAT include, in particular, proper bookkeeping. It must keep its books and records in accordance with the principles of commercial law (Art. 70 para. 1 VAT Act). The lower court made a discretionary assessment of the appellant for the tax periods 2016 - 2020. It had to be examined whether the lower instance was obliged to do so. The court concludes that the requirements for carrying out a discretionary assessment were met in casu. Furthermore, the lower court's discretionary assessment cannot be qualified as manifestly erroneous. As a result, the appellant fails to prove the incorrectness of the previous instance's assessment. Dismissal of the taxpayer's appeal.
Judgment of May 6, 2025 (A-4476/2023) - for publication: Duty exemption for charitable organizations; According to Art. 17 para. 2 ZV, duty-free importation is only possible if it serves the purpose of alleviating need or damage. This is not the case for the rocket research valves in question. Dismissal of the appeal by the charitable organization.

Update:

A-2677/2023: Withholding tax 2012-2016 (collection) - Decision confirmed by the Federal Supreme Court with judgment of 24.07.2025 (9C_132/2025)
A-2724/2021: Additional claim for customs duties - contested before the BGer

Administrative assistance incl. updates: