VAT and direct taxes

Case 1 (letting of a commercial property as private property)

Facts

Manuel Peter, who lives in his own 5-room apartment in Bern, inherits after his mother's death the house in Burgdorf (BE), a small detached house in Lyss (BE) and a commercial property also in Lyss (BE).

The commercial property has so far been fully opted for for VAT purposes.

Manuel Peter would like to keep and rent out the inherited properties.

How are the properties and the income from them to be assessed for direct and value-added tax and do problems arise from the tax structure?

Variant 1

In the future Manuel Peter would also like to rent a room in his 5-room apartment in Bern regularly via Airbnb.

variant 2

After a few years Manuel Peter decides to demolish the commercial property, to build and sell an apartment house on the property.

Case 2 (tax exemption/entrepreneurial activity association)

Facts

The association Foody, based in Berne, supports single parents with low income by providing them with lunch at a reduced price. The beneficiaries receive a full lunch for CHF 10. The association is financed by membership fees, donations and the sale of meals. The organs of the association and all helpers work voluntarily and without remuneration. The lunches are purchased from participating restaurants at cost price.

In 2016, the association generated income of CHF 90,000, of which CHF 10,000 from the sale of meals, CHF 60,000 from donations, CHF 15,000 from sponsorship and CHF 5,000 from membership fees.

How is the association's activity to be assessed in relation to the tax liability for direct taxes and VAT?

Variant

In 2016, the association generated income of CHF 360,000, of which CHF 120,000 came from the sale of meals, CHF 100,000 sponsoring, CHF 90,000 donations and CHF 50,000 membership fees.

Case 3 (Expenses justified by business)

Facts

Vanessa Stutz is the sole shareholder and managing director of VStutz AG, based in Bern. The company provides fiduciary services, has 2 employees and achieves an annual turnover of CHF 500,000.

Vanessa Stutz buys a company car for CHF 250,000.

How is the company car to be treated for direct and value added tax purposes?

Case 4 (Strategic management of holding companies)

Facts

Stratos AG, headquartered in Zug, is a holding company within the meaning of Art. 28 para. 2 StHG (asset test fulfilled). It has no personnel of its own. It holds investments in operationally active subsidiaries (manufacture of industrial goods) based in Switzerland.

The subsidiaries were granted loans by Stratos AG, whereby the maximum interest rates in accordance with the FTA Circular on monetary benefits were observed. No dividends have been paid out by subsidiaries in recent years. No other intercompany transactions were recorded.
What optimization possibilities are there from a VAT and direct tax perspective and what is the relationship between them?

Variant 1

Stratos AG grants the loans to the subsidiaries without interest.

variant 2

The operating subsidiaries are not based in Switzerland but abroad.