- Swiss VAT Law changes effective January 2025 impact subsidies and public law contributions.
- Subsidies affect the VAT position of receiving companies.
- Government incentives related to global minimum tax rules raise VAT questions.
- Subsidies are not considered remuneration for services under VAT Law.
- Public entities provide subsidies without market-based consideration.
- New regulation specifies funds designated as subsidies by public entities.
- No conclusive list of what qualifies as subsidies is provided.
- Explicit designation as a subsidy binds the SFTA.
- Subsidies are non-turnover and not subject to VAT.
- Subsidies result in a proportional reduction of input VAT for recipients.
- Different methods can be used for input VAT reduction.
- Distinction between directly and non-directly attributable expenses is essential.
Source: deloitte.com
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.
