- The Federal Administrative Court ruled on the FTA’s practice regarding input tax deduction for investment companies.
- The court focused on Article 29(2) of the VAT Act and its interpretation.
- The case involved an investment company claiming input tax for qualified participations.
- The FTA allocated input tax to a category requiring correction, limiting deductions.
- The court confirmed the FTA’s restrictive approach but criticized the use of the turnover key.
- The turnover key ignored significant business activities, causing distortion.
- The case was sent back to the FTA to find a more suitable method for adjustment.
- The decision confirms the FTA’s restrictive stance but suggests alternative methods for input tax allocation.
Source: primetax.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.
Latest Posts in "Switzerland"
- Federal Administrative Court Decision on VAT Input Tax Deduction Timing for 2020 Tax Period
- Federal Administrative Court Confirms Input Tax Deduction Reduction, Classifies SFOE Payments as Subsidies
- Swiss Federal Administrative Court Rules on VAT Reference Tax for Reinsurance Services
- Federal Administrative Court Confirms VAT Liability for Electronic Services from 2015-2020
- FAC Partially Upholds Appeal on VAT Dispute Over Vehicle Use and Travel Expenses, 2014-2018
