In a judgment rendered on 5 October 2021 (case 2C_891/2020), the Swiss Federal Supreme Court upheld the decision by the Federal Administrative Court of 18 September 2020 (case A-7028/2018), which had found that the proceeds realized by a Swiss corporate VAT taxpayer from the resale of a position of its own stock (“treasury shares”) did not fall within the scope of Swiss VAT, i.e. constituted a “non-turnover”. Therefore, such proceeds are treated in the same fashion as the proceeds from a shareholder capital contribution received for the issuance of new shares. The VAT treatment as capital contribution (“out of scope” flow of funds) meant that the taxpayer’s ability to deduct input VAT suffered in connection with the re-sale of treasury shares remained unaffected.
Source: kluwertaxblog.com
Latest Posts in "Switzerland"
- Federal Administrative Court Decision on VAT Input Tax Deduction Timing for 2020 Tax Period
- Federal Administrative Court Confirms Input Tax Deduction Reduction, Classifies SFOE Payments as Subsidies
- Swiss Federal Administrative Court Rules on VAT Reference Tax for Reinsurance Services
- Federal Administrative Court Confirms VAT Liability for Electronic Services from 2015-2020
- FAC Partially Upholds Appeal on VAT Dispute Over Vehicle Use and Travel Expenses, 2014-2018
