- The Federal Supreme Court ruled that geothermal exploration grants are subsidies under Art. 18(2)(a) MWSTG, not cost-compensation payments under Art. 18(2)(g).
- This classification was based on the project’s early stage, support for exploration work, and lack of direct electricity production.
- The court also noted that MBI 07 treats these grants as subsidies; while not binding, it should be followed absent good reason.
- The subsidy agreement itself explicitly labeled the grants as subsidies.
- As a result, the FTA correctly reduced the input tax deduction, and the taxpayer’s appeal was dismissed.
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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