VATupdate
Switzerland

Share this post on

Input VAT Deduction and (Non-) Entrepreneurial Sphere of Activity: BG Judgement 9C_651/2022

  • The right to deduct input VAT is broadly defined under the current VAT Act.
  • The distinction between entrepreneurial and non-entrepreneurial activities affects input VAT deduction.
  • The Federal Supreme Court dealt with this distinction in judgement 9C_651/2022.
  • The case involved an association that organized Christian musicals.
  • The association generated income from donations and various services.
  • The FTA denied the association an input VAT deduction for the musicals.
  • The Federal Supreme Court referred to previous case law on non-entrepreneurial spheres.
  • A non-entrepreneurial sphere is characterized by a lack of sustainable income from services.
  • The main purpose of the musicals was non-profit or idealistic activity, not income generation.
  • The association’s idealistic purpose can be clearly distinguished from its entrepreneurial activities.

Source: primetax.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

Sponsors:

VAT news
VAT news

Advertisements:

  • AXWAY - VATupdate Banner
  • VATupdate.com