- VAT/Customs
- Entreprises
Update on value added tax (2026)
Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)Note: This language version is an automatically generated translation. The text may therefore contain linguistic and terminological errors.
view in original language (German)The VAT assessment of subsidies, brokerage services and restructurings is one of the most challenging areas of VAT practice - especially in the case of state-financed foundations, finder's fees in the financial sector or the transfer of real estate within a group. Using practical case studies, Ralf Imstepf and Tobias F. Rohner show when grants qualify as subsidies, under what conditions mortgage and capital brokerage is exempt from tax and how the transfer of business and investment properties should be handled correctly in the notification procedure. The solutions provide you with the necessary tools to recognize typical stumbling blocks in subsidies, financial services and restructuring and to assess them correctly for VAT purposes.
Film production company F, based in Canton A, is engaged in the production and distribution of films and is subject to value-added tax.
Film production company F receives project-related grants from the Film Foundation. The Film Foundation is a private-law foundation within the meaning of Art. 80 et seq. of the Swiss Civil Code. Its statutory purpose is to promote professional filmmaking in Canton A. It is a non-profit organization. It processes grant applications submitted by the film industry and decides on the allocation of funds (the decision is made by a specialized commission that does not include any representatives of a public authority). The foundation was endowed with funds from Canton A and receives ongoing contributions from it. Canton A also provides a majority of the members of the foundation board. The funding grants must be repaid to the Film Foundation by the film production company F if the film is commercially successful. The Film Foundation receives annual contributions of CHF 12 million from Canton A, of which it distributes CHF 11 million as funding grants, while using CHF 1 million for its personnel and operating costs.
How do you assess the funding grants to Film Production Company F from a value-added tax perspective?
Basic facts as in section 1.1.
The Film Foundation generates investment income of CHF 800,000 per year through the shrewd investment of its endowment capital in cryptocurrencies and corporate bonds.
How do you assess the subsidies granted to film production company F from a value-added tax perspective?
Basic facts as in section 1.1.
The Film Foundation receives not only contributions from Canton A, but also annual contributions from private donors totaling CHF 1 million.
How do you assess the subsidies granted to film production company F from a value-added tax perspective?
Basic facts as in section 1.1.
The Film Foundation generates investment income of CHF 800,000 per year by granting loans to film production companies.
How do you assess the subsidies granted to film production company F from a value-added tax perspective?
The Swiss Thermal Insulation Association (FWS), based in Lucerne, is an association under Art. 70 of the Swiss Civil Code. For new construction or renovations with appropriate thermal insulation, building owners receive a corresponding certificate from the FWS. This certificate costs CHF 400 and is required as proof for the deduction of maintenance costs for energy-saving measures in direct taxes.
In some cantons, the canton covers the costs of this certificate. In some cantons, the canton reimburses the building owners directly; in cantons A and B, payment for the certificate is made directly by the canton to the FWS.
How should the payments for the certificates in Cantons A and B be assessed?
Basic facts as in section 1.9.
Canton A now classifies the payment made to the FWS as a subsidy.
How should the payments for the certificates in Canton A be assessed?
Privat Equity AG (PEAG) is dedicated to advising and supporting companies in the area of financing. PEAG’s contracting parties issue new shares in connection with capital increases. In return for compensation, PEAG seeks investors for the contracting parties. However, PEAG has no mandate to negotiate the terms. The compensation is only due if the conclusion of contracts is actually facilitated. In the contracts, the compensation is referred to as a “finder’s fee.” As a rule, PEAG is also simultaneously commissioned by the investors to seek out investment opportunities.
Hypo AG (HAG) assesses the needs of mortgage loan seekers regarding the desired financing during a consultation. HAG then reviews creditworthiness and records the file on a platform as a potential mortgage loan transaction. In addition to HAG, other investors have also entered their mortgage terms on the platform. The platform matches the mortgage applicant’s parameters with those of HAG and the potential investors and generates a list of offers. The role of the HAG client advisor is limited to presenting the offers. If a transaction is concluded, HAG issues the loan agreement for the mortgage applicant, regardless of whether the mortgage will be held by HAG or an investor. If the mortgage applicant chooses an investor, the contract between the applicant and the investor explicitly states that the documentation is transferred from HAG to the investor. HAG is thus initially a party to the brokered mortgage loan agreement itself. The loan amount is disbursed to the mortgage loan applicant through HAG. The investor commissions HAG to manage its loan receivables. For each mortgage brokered to the investor via the mortgage platform, the investor owes HAG a brokerage fee as of the transfer date. The brokerage fee covers all of HAG’s services in connection with the acquisition, consultation, and brokerage of a mortgage arranged via the mortgage platform. In addition, HAG charges a flat-rate expense allowance and an annual servicing fee for management.
Is the “brokerage fee” to be classified as compensation for tax-exempt brokerage services within the meaning of Art. 21(2)(19)(a) of the VAT Act?
Same facts as in section 2.3. HAG merely brings mortgage seekers and investors together on its platform. For this, it charges investors a fee that is due if the mortgage contract is concluded. Unlike in the facts of section 2.3, however, HAG does not provide servicing after the mortgage is concluded.
It is clear from both the contracts and the description of the complainant’s services on its website that the purpose of the contractual relationship between the customer and the HAG is to arrange the most favorable mortgage possible for the customer. In order for HAG to act as an efficient broker, it must first clarify the customer’s needs and determine which mortgage model best suits those needs (type of mortgage, term, etc.). Furthermore, the customer’s financial situation must be assessed and analyzed to calculate, for example, the affordability of the desired loan amount. This and other information is incorporated into the individual mortgage file, which is submitted to the financing partners so that they can submit offers tailored to the customer based on as much relevant data as possible. The website and the cooperation agreement state that the complainant is only compensated via commission upon successful brokerage.
Does this change the VAT assessment?
Elektro AG, a company subject to value-added tax based in Uster (ZH), is active in the production and installation of electrical components. Over the years, it has also invested its profits in factory and commercial properties (used by the company itself and rented out), which are now to be spun off at book value into a newly established sister company. Property management is to be handled by an employee of the sister company (annual salary CHF 80,000).
Annual rental income amounts to CHF 1.9 million. The company intends to continue opting for the tax treatment applicable to this income as it has done in the past.
How can the transfer of the properties be handled for VAT purposes?
Elektro AG, a company subject to VAT headquartered in Uster (ZH), operates in the production and installation of electrical components. Over the years, it has also invested its profits in factory and commercial properties (both owner-occupied and leased), which are now to be spun off at book value into a newly established sister company. Property management is to be outsourced (annual cost: CHF 50,000).
Annual rental income amounts to CHF 1.4 million. The company intends to continue opting for the tax treatment applicable to this income as it has done previously, where appropriate.
How can the transfer of the properties be handled for VAT purposes?
Elektro AG, a company subject to VAT headquartered in Uster (ZH), operates in the production and installation of electrical components. Over the years, it has also invested its profits in investment properties, which it holds in addition to its two business properties in Uster. The installation business, together with the associated business property and the investment properties, is now to be spun off at book value into a newly established sister company. The production business, together with the associated business property, is to remain with Elektro AG.
How can the transfer of the properties be handled for VAT purposes?
Elektro AG, a VAT-registered company headquartered in Uster (ZH), operates in the production and installation of electrical components. Over the years, it has also invested its profits in investment properties, which it holds in addition to its own business premises in Uster. Elektro AG is now to be absorbed by the VAT-registered Hammerhai AG, headquartered in Zurich, by way of an absorption merger at book value.
How can the transfer of the real estate be handled for VAT purposes?
