Appeal Dismissed: VAT Input Tax Deduction and COVID-19 Subsidies—Equal Treatment and Legal Interpretation

The case concerns whether COVID-19 subsidies affect input tax deduction under the VAT Act.
The court found that Art. 33(2) of the VAT Act is too broadly defined and requires teleological interpretation.
A. AG cannot rely on the FTA’s practice regarding COVID-19 contributions.
A. AG does not qualify for equal treatment in cases of error because it received subsidies from the cantonal government, not COVID-19-specific subsidies.
The taxpayer’s appeal was dismissed.

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.