Overview of the tax rulings of the Swiss Federal Administrative Court published between October 14 - 20, 2024:
- Judgment of September 20, 2024 (A-5963/2023): VAT, purchase tax (2016 and 2017); in the present case, it is disputed to what extent the appellant must pay the purchase tax on services purchased in the 2016 and 2017 tax periods. According to the lower court, the appellant must pay the purchase tax for all services purchased from abroad. The appellant is of the opinion that it obtained services from a publisher within the meaning of the administrative practice (para. 9.2 of MBI 23), which are exempt from tax. However, after a detailed examination, the court comes to the conclusion that, contrary to the opinion of the complainant, the services of the "producers" are not to be regarded as services of publishers within the meaning of Art. 21 para. 2 no. 16 of the VAT Act. The disputed services of the "Producer" are therefore not to be subsumed under the tax exemption pursuant to Art. 21 para. 2 no. 16 VAT. The appeal is rejected.
Updates:
- Judgment of June 29, 2023 (A-2585/2022): VAT; brokerage in the financial sector; A AG supported companies in the search for investors for their new shares to be issued and declared its turnover from this as exempt financial brokerage within the meaning of MWSTG 21 para. 2 no. 19 lit. e; according to the FTA, an exempt brokerage activity only exists if the underlying transaction is exempt. According to the FTA, an exempt brokerage activity only exists if the underlying transaction brokered is exempt, which does not apply to the "brokerage of capital contributions" as non-remuneration; according to the FAC, the interpretation of the standard means that the underlying transaction brokered must be exempt; dismissal of the appeal by A AG; decision overturned by the Federal Supreme Court.
- Rulings of August 28, 2024(A-5956/2023 and A-5962/2023): VAT 2014-18; input VAT correction; the insurance cover that the taxable person offers abroad for an additional fee for its training programs (e.g. language courses or semesters abroad) is an independent supply and not an ancillary supply. The input tax adjustment made by the FTA (including the turnover key applied) is not objectionable. Dismissal of the taxpayer's appeal; decisions appealed to the Federal Supreme Court.
Decisions are listed chronologically by publication date.
