- The Swiss Federal Supreme Court ruled that associations organizing sports tournaments are considered service providers for VAT purposes.
- Entry fees for participating in such tournaments are attributed to the organizing association, not local venues.
- Since the tournaments are VAT-exempt, the association cannot deduct input tax on related expenses.
- The Court dismissed the association’s appeal and upheld the input tax adjustment imposed by the Federal Tax Administration.
- Sports organizations must assess their external role and VAT exposure, as presenting themselves as organizers affects their VAT obligations.
Source: vatabout.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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