Decisions of the Swiss Federal Administrative Court (CW 40–2026)

Overview of tax law decisions by the Swiss Federal Administrative Court published between September 28 and October 4, 2026:

Judgment of September 21 (A-7433/2024):VAT 2018–2021; adult entertainment club; attribution of services; discretionary assessment. The issue in dispute was whether the sexual services provided by the hostesses should be attributed, for VAT purposes, to the operator of the adult entertainment club or to the hostesses themselves. The Federal Administrative Court (BVGer) upheld the attribution to the operator: Based on the club’s public image—particularly its website—the club had presented itself to third parties as the service provider; furthermore, the hostesses’ organizational integration, despite certain degrees of autonomy, indicated that they were not engaged in self-employment. Since the operator had recorded only 40% of the revenue, the Federal Tax Administration’s (ESTV) discretionary assessment was justified. Dismissal of the taxpayer’s appeal.
Judgment of September 22 (A-751/2026):VAT 2015–2019; Services Provided to Closely Related Persons; Provision of Collector’s Cars. The issue in dispute was whether the vehicles owned by A. AG were made available to its sole shareholder for private purposes. The Federal Administrative Court affirmed this conclusion based on a comprehensive assessment of the evidence, in particular the significant increase in mileage, the absence of logbooks, and the sole shareholder’s extensive control over the vehicle fleet. Making the vehicles available constitutes a service relationship with a closely related party. The estimation of the rental fee as a third-party price based on a full-cost accounting method is not objectionable. Dismissal of the appeal filed by A. AG.

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