Workshop by Roger Rohner and Ralf Imstepf on the occasion of the ISIS) seminar on November 02 + 03, 2025 with the title "Update on VAT"
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)The “Bürokratiestopp” Foundation, based in Zurich, aims to reduce bureaucracy in Switzerland. It does this through advertisements in daily newspapers, the operation of a website, the distribution of flyers, and the collection of signatures for popular initiatives aligned with the foundation’s purpose. A specific political goal is to halve the budget of the FTA’s VAT Division.
The foundation is financed, on the one hand, by the endowment capital donated by the founder, Mr. Haran Tschan (resident in the Canton of Zurich), and, on the other hand, by donations from private individuals and companies subject to VAT audits.
The Foundation takes the position that, pursuant to Art. 18(2)(d) and (e) of the VAT Act, no input tax deduction adjustment is provided for either donations or the dedication of the foundation capital, and that it is therefore entitled to the full input tax deduction.
The “Bürokratiestopp” Foundation disputes the previous assessment. To establish a business activity entitling it to input tax deduction, it sells 100 chocolate coins for 1 franc each in front of Zurich Main Station before Christmas.
Foundation X, based in Lucerne, is dedicated to funding projects for people with disabilities. On its website, it operates an online shop where T-shirts, mugs, and other merchandise can be purchased domestically.
At its headquarters in Lucerne, it also rents parking spaces to third parties.
The financing of Foundation X is as follows (figures in CHF excl. VAT):
According to its entry in the Commercial Register, the association “Heavenly Music,” based in Zurich, aims to support and promote church-related and charitable causes in Switzerland and abroad, thereby pursuing a non-profit objective. Central to the association’s purpose is the production of Christian musicals in Switzerland. These are financed 70% by donation income (from private individuals, churches or church-like organizations, and collections taken during the events). No admission fee is charged for the musicals themselves. However, the association also generates revenue from the sale of food at the musicals, as well as from the sale of books and T-shirts, from (optional) advertising services for companies, and from accommodation services. For this reason, the association has also registered as a taxable entity for value-added tax.01
According to its entry in the Commercial Register and its bylaws, the Bernese Oberland Animal Welfare Association, based in Thun, aims to operate shelters at various locations in the Bernese Oberland for surrendered pets and wild animals in distress. The association is exempt from direct taxes pursuant to Art. 56(g) of the Federal Tax Act (DBG).
The association is financed exclusively through donations from third parties. Donors may choose whether to make a donation including VAT, in which case they may provide a link that will be posted on the association’s website with a reference to the donor, or whether to make a donation without additional VAT, in which case the donor’s name will be displayed on the exterior of the large animal shelters.
High Value GmbH, headquartered in Geneva, operates in the field of taxable asset management and investment consulting for very wealthy private individuals. It generates annual revenues in the high double-digit millions from this activity and is accordingly registered as a VAT-liable entity. It provides only taxable services and is therefore generally entitled to full input tax deduction.
In the publicly accessible lobby of its headquarters, there is an art collection valued at CHF 5 million, which has been steadily expanded and supplemented over time and is maintained by a curator under contract.
01 This case is based on the decision of the Federal Supreme Court, October 5, 2023, 9C_651/2022.
Hephaistos AG has been registered in the VAT register with the FTA since April 2018. Its purpose includes the development of new technologies and applications, particularly in the areas of open and decentralized software architectures. It operates software and network nodes (nodes), produces and validates blocks on blockchains, and validates transactions. Specifically, Hephaistos AG acts as a “validator” performing validation/verification activities in the “Polkadot” and “Kusama” blockchain networks. For its activities, Hephaistos AG receives block rewards (99.9%) and transaction fees (0.01%).
Kronos AG conducted an ICO (Initial Coin Offering) in 2018. In exchange for the funds raised (CHF 2 million excluding VAT), it offered tokens to investors. These tokens are intended for use with all functions of the Kronos platform.
The platform brings together different categories of users. The basic idea is that classical music stars can interact with their fans on the platform. The stars are rewarded with tokens for this; fans must purchase tokens to interact, but can also be rewarded with tokens for their behavior on the platform (e.g., when they produce content). In addition, the platform is open in particular to advertisers (e.g., music stores): To advertise their products on the platform, they must purchase tokens. The platform operator Kronos AG, which issues the tokens, may intervene on the platform to either withhold or withdraw a portion of the tokens put into circulation, exchanged, or held by other users, or to allocate tokens to other platform users. In principle, however, the exchange of tokens is automated—based on smart contracts.
On May 3, 2018, Kronos AG signed a service agreement with its French sister company, Rhea SA. For its services, Rhea SA billed Kronos AG a total of CHF 1 million in 2018.
As of January 1, 2019, Kronos AG registered with the FTA as a VAT-registered entity. Subsequently, it was audited by the FTA.
The following cases must be assessed based on the legal situation before and after January 1, 2025.
On the online platform “Konfuzius-Express,” Chinese sellers sell goods worth up to CHF 50 in their own name and on their own account. The goods sold are shipped individually by the Chinese sellers directly via mail to domestic buyers.
Ms. Soldau operates as a sole proprietor in the hotel and restaurant industry in Switzerland and has been registered for VAT for 5 years. She generates annual revenue of CHF 1.8 million, with one-third each from lodging services at the hotel, food and beverage services at the restaurant, and consulting services for other restaurants.
Ms. Soldau has previously calculated VAT on an actual basis but has now decided to switch to calculating VAT using net tax rates.
Reisegut AG, based in Düsseldorf, sells hotel accommodations and coach tours in Switzerland to its customers in Germany under its own name. Reisegut AG generates annual revenue of EUR 15 million worldwide.
