zsis) - Center for Swiss and International Tax Law

Real estate & VAT - News on the notification procedure

With the new publication of FTA VAT Info 11 Reporting procedure in February 2025, the scope of application of the reporting procedure was redefined and defined more precisely, particularly for real estate, through changes in practice and practical clarifications. These changes accentuate the need to examine the alternatives available for each real estate transaction in detail in order to avoid irreparable errors and minimize VAT as a cost factor.

Charitable foundations in tax law - open questions

Non-profit status depends largely on the framework conditions. If these are right, people are willing to make a contribution - be it through donations or volunteering. Tax law provides important incentives: it exempts charitable organizations from tax liability and allows donations to charitable organizations to be deducted from taxable income. Tax law has thus made a significant contribution to the strong growth of the charitable sector in recent years. The foundation sector is booming.

Foundations and value added tax

Since the introduction of value added tax (VAT) in 1995, its application to foundations has repeatedly given rise to discussion. Questions such as whether and when they are liable to pay tax, whether they are allowed to deduct input tax or when they are considered charitable still give rise to discussions today. The Federal Supreme Court has also dealt with VAT issues relating to foundations on several occasions. In the new revision of the Value Added Tax Act (VATA), there are also changes that could affect foundations in particular. This article deals with the most important issues that foundations have to deal with in the VAT environment.

VAT treatment of fiscal and other financial incentives to promote business locations

As a result of the global minimum tax, Switzerland must rethink its existing fiscal incentives to strengthen the location of business standards. The tax advantage of existing incentives (e.g. special R&D deduction, patent box) loses its effectiveness for affected companies. The first cantons are therefore proposing new instruments such as the Qualified Refundable Tax Credit or state subsidies. This article examines the question of whether such new incentives to promote business locations fall under the VAT term "subsidies and other contributions under public law" and how they should therefore be treated, in particular to what extent a reduction of the input tax deduction should be applied or can be waived.