Swiss Court Rules on VAT Classification of Remuneration Despite Direct Tax Employment Status

The Federal Supreme Court ruled on a VAT case from 2015 to 2019 involving complainants who paid income to a husband of one complainant that was allocated to clients due to economic significanceThe central issue was whether remuneration received by complainants could be classified as services from self employment subject to VAT taxationThe Court disagreed with lower court statements that different qualifications for direct taxes versus VAT could be justified simply because the two tax types serve different purposesThe Court found that qualifying the husband’s work as dependent employment for direct taxes is not compatible with classifying the same activity as self employment for VAT purposesThe taxpayers’ appeal was dismissed because appellants failed to demonstrate how the lower court’s conclusion was unlawful

Source: search.bger.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.

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