MWST-Info 05
- A subsidy is defined as being provided by the public sector, with no specific return to the payer, and based on a legal basis
- Contributions made by institutions on behalf of communities are considered subsidies
- If funds are explicitly labelled as subsidies by a community, they are treated as such under the law
- Changes in VAT regulations will affect subsidies starting from January 1, 2025
- Specific terminology must be used when labelling funds as subsidies, and must be communicated directly to the recipient
- Funds must be labelled as subsidies within 240 days of the end of the fiscal year for the legal fiction to apply
Source: estv.admin.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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