FAC Upholds Higher VAT Rate for Mixed Services Due to Insufficient Proof of Lower Rate Eligibility

• The taxpayer was granted two different net tax rates (SSS) for various services from 2016 to 2019.
• The FTA determined that 67% of sales invoiced at the lower SSS should have been invoiced at the higher SSS due to inclusion of cleaning services.
• For 2018 and 2019, the FTA made a discretionary assessment and reclassified 67% of services to the higher SSS, also adding reference tax.
• The FAC upheld the FTA’s approach, stating the taxpayer bears the burden of proof for applying the lower SSS.
• 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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