- A AG owned a holiday property in a Swiss ski resort, with B as its sole shareholder and tenant.
- The property was used exclusively by B as a vacation apartment after significant investments in 2018 and 2019.
- The FTA found tax evasion, retroactively removed A AG from the VAT register, and reclaimed input tax.
- Both the Federal Administrative Court and the Federal Supreme Court ruled that A AG was not operating a business under the VAT Act and was not liable for VAT.
- The Federal Supreme Court dismissed A AG’s appeal, confirming the application of case law on owner companies and upholding the finding of tax evasion.
Source: search.bger.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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