Overview of the tax law decisions of the Swiss Federal Administrative Court published in the week from 7 to 13 October 2019.
- Judgment of 3 October 2019 (A-5345/2018): Value Added Tax (VAT); VAT supplier; discretionary assessment. "In connection with erotic services, the Federal Administrative Court has repeatedly held that the decisive factor in the assessment of VAT autonomy or "external appearance" is how the offer to the general public appears to a neutral third party in an objectively recognisable manner (BVGer A-3050/2015 E. 3.1.1, A-589/2014 of 27 August 2014 E. 3.1.1, A-6198/2012 of 3 September 2013 E. 3.1.1, with further references) The starting point for the examination of this objective appearance in the above-mentioned cases was regularly the internet presence [...]. (E. 2.2.4); according to the extracts from the web archive (website of the club operator), the sex service providers clearly appear to be part of the club's offer to a neutral observer. "Although it was occasionally pointed out on the homepage that the sex service providers were "independent" or working on "their own account". However, these indications alone cannot decisively influence the overall picture conveyed by the homepage, according to which the club appeared as the provider of the sexual services provided by the club. The external appearance thus speaks overall against the independence of sex service providers under VAT law and in favour of the complainant's qualification as a provider of services subject to VAT. [...] In the light of the above-mentioned evidence, the independence of the sex service providers in the controlled period must therefore be denied from a VAT point of view. According to what has been said, sexual services are perceived from the outside as an essential part of the club's offer, which is why the club operator, and therefore the complainant, must be regarded as a provider of services subject to VAT". (E. 3.2.2) Furthermore, the complainant fails to prove the manifest inaccuracy of the estimate of turnover from sexual services at first instance. The appeal is dismissed to the extent that it is upheld.
Decisions of the Federal Administrative Court in the area of administrative assistance:
- Judgment of 11 September 2019 (A-1538/2018): Administrative assistance DTA Switzerland - Bulgaria (BG); the appeal is upheld in part, but dismissed for the remainder
- Judgment of 3 September 2019 (A-4252/2019): Administrative assistance DTA Switzerland - United Kingdom (GB); the appeal will not be upheld.
Decisions are listed chronologically by publication date.
