Sale of own shares - a service within the meaning of the VAT Act?
In its ruling 2C_891/2020 of 5 October 2021, the Federal Supreme Court upheld the Federal Administrative Court and decided, contrary to administrative practice, that the sale of treasury shares does not constitute a supply of services within the meaning of Art. 18 para. 1 VAT Act and is therefore outside the scope of application of VAT. This article is a brief analysis of the Federal Supreme Court's decision.
Relocation of businesses, functions and assets for profit tax purposes under VAT law
Within the framework of the STAF, a legal basis for the recording of cross-border inbound and outbound relocations of operations, functions and assets has been created at the federal, cantonal and municipal level. The question arises as to how such relocations should be treated for VAT purposes. The treatment is particularly relevant for inbound relocations in industries with a reduced input tax rate. As an outflow of the "dual entity" approach, relocations within the same legal entity between headquarters and permanent establishment are of interest.
Data as a value added tax payment?
In the course of ongoing digitisation, more and more business models are being established in which the user receives the service free of charge at first glance. However, a precise analysis shows that in order to do so, the user must provide user and usage data as well as content. This paper examines whether, from the point of view of Swiss VAT, such data qualifies qualitatively and quantitatively as a fee under Art. 3 lit. f and 24 para. 1 MWSTG and thus constitutes a taxable service.
The principle of investigation as a challenge to fully automated procedures
Since 1 January 2017, Germany has had the option of taxing without any human intervention, i.e. fully automatically. This is contrasted with the legislative project to introduce the possibility of fully automated assessment of customs duties, certain commercial transport taxes and the performance-related heavy vehicle tax in Switzerland. The article examines the possibilities and limits of full automation in largely standardized procedures.
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FTA publishes draft VAT practice statement: Supply of methadone and heroin
The FTA posted a first draft of the VAT practice on its website on 4 April 2022:
Federal Council enacts relaxation of VAT obligation for associations
The Federal Council has enacted the increase in the turnover limit for the VAT obligation of non-profit, voluntarily run sports and cultural associations and non-profit institutions from the previous CHF 150,000 to the new CHF 250,000, subject to the proviso that the referendum deadline of 7 April 2022 expires unused.
FTA notice regarding new restriction in the VAT refund procedure vis-à-vis Austria
Switzerland adapts its counter-law to Austria's new regulation, according to which companies from third countries such as Switzerland are excluded from the VAT refund when purchasing fuel in Austria for invoices from 2021 onwards.
FTA publishes drafts of the VAT practice statement: Hospitality services and private shares
The FTA posted the first drafts of the VAT practice on its website on 18 January 2022.
Renaming of the Federal Customs Administration (FCA) to the Federal Office for Customs and Border Security (FCO)
The Federal Customs Administration (FCA) is now called the Federal Office of Customs and Border Security (FCO). This was announced by the authority in a corresponding media release.
FTA publishes material adjustments regarding publications on the VAT Act (20 December 2021)
On 20 December 2021, the FTA published material adjustments concerning the publications on the subject of pharmacists on the website.
Private share of business vehicle for VAT
In the case of direct federal tax, the flat rate for the taxation of the private use of business vehicles will be increased from the current 0.8% to 0.9% as of 1 January 2022. According to the FTA, this flat rate must also be applied to the VAT declaration from this date.
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