Decisions of the Swiss Federal Administrative CourtCW 38 - 2025)

Overview of the tax rulings of the Swiss Federal Administrative Court published between September 15 - 21, 2025:

Judgment of September 02, 2025 (A-1426/2024): VAT; subjective tax liability; supplies to closely connected persons; remuneration - non-remuneration; subscription tax 2014 - 2018; In the present case, it is initially disputed and must be examined whether the payments made by the "members" to the complainant are to be qualified as donations or as remuneration. On this point, the court comes to the conclusion that there is no taxable remuneration. It is also necessary to clarify the situation with regard to payments made by so-called "individual donors". A service relationship must therefore also be denied here, which is why the flows of funds in dispute are deemed to be so-called non-remuneration. Next, the payments made by five legal entities to the complainant must be qualified (as donations or fees) and, in connection with this, whether the publication of these payments on the complainant's website is a taxable advertising service or a tax-exempt publication service. These are announcement services exempt from tax. Furthermore, it must be clarified whether the payments from the related foundation to the complainant are to be classified as remuneration for any project management/support or as donations. A service relationship must therefore also be denied here, which is why the flows of funds in dispute are deemed to be so-called non-remuneration. In addition, it must be clarified whether the income from staff leasing is subject to VAT and whether it is charged at arm's length. Finally, it must be clarified whether the services of the complainant and the services (so-called "donations in kind") of Mr. G. and H. GmbH were exchange transactions or whether they were donations and what the situation is with regard to the subjective VAT liability and the supply of services from abroad. The appeal is rejected on these points. The VAT owed by the appellant in this regard, including default interest, is to be calculated by the lower court. The appeal is therefore partially upheld.
Judgment of September 02, 2025 (A-6278/2024): VAT; Place of supply of services; Offshore companies; If it cannot be proven that the offshore companies that received taxable financial services are not controlled by persons in Switzerland, the place of supply of services is deemed to be in Switzerland. Partial approval of the taxpayer's appeal.
Judgment of March 20, 2025 (A-4773/2022): CO2 sanction pursuant to Art. 13 of the CO2 Act for the year 2021; The date of 31 January after the end of the reference year pursuant to Art. 24 para. 1ter CO2 Ordinance for the submission of the chain of custody-based data is a forfeiture deadline. Dismissal of the complainant's appeal.

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