Swiss Court Decisions Clarify VAT Exemptions for Financial Intermediation, Aligning with EU Rules

• Swiss court decisions clarify VAT treatment for financial intermediation services
• Swiss federal administrative court recognized VAT exemption for investor-matching services
• Swiss Federal Supreme Court denied VAT exemption for execution-related commissions
• Decisions refine interpretation of Swiss VAT exemption for financial intermediation
• Alignment with EU framework helps avoid a specific Swiss finish
• Success-based remuneration and neutrality are critical for VAT-exempt intermediation
• Contractual structure and documentation are essential for VAT classification
• Execution-related commissions may be taxable if tied to asset management
• Regulatory asymmetries between banks and independent asset managers may need policy adjustments
• Distinction between vatable introduction services and VAT-exempt brokerage services is often disputed
• Swiss VAT Act exempts financial transactions like securities intermediation
• Swiss jurisprudence emphasizes causal role and success-based remuneration for exempt intermediation
• Administrative court ruled Corporate Finance AG’s services as VAT-exempt due to success-based finder’s fee

Source: insightplus.bakermckenzie.com

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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