Federal Supreme Court Denies Service Relationship, Confirms Subsidy Status in VAT Dispute

The Federal Supreme Court ruled that the payments made to the complainant by SDC were subsidies, not part of a supply relationship under the VAT Act. The appellant’s claim of providing services in return for payment was rejected, as the program was initiated and implemented independently by the appellant, with SDC only providing co-financing. The taxpayer’s appeal was dismissed.

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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