- The court held the FTA’s res judicata ruling was valid for revenue differences, but not for the input tax adjustment; the bias/recusal claim failed because objection proceedings are handled by the same authority and no impartiality issue arose.
- A closely related foundation rented office space to the taxpayer below third-party price; because VAT was not properly passed on or paid, the taxpayer could not deduct the input tax.
- For social-assistance reintegration work, the taxpayer’s service to the foundation was exempt, but the FTA wrongly used a cost-plus method; the agreed municipality third-party price had to be used instead.
- This lowered the sales allocation key and favored the taxpayer in the mixed-use input tax adjustment.
- For material costs used in the taxable sector, the FTA correctly treated the input tax as part of the mixed-use adjustment rather than allowing full deduction.
Source: bvger.weblaw.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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