Services provided by veterinarians and animal clinics are subject to value-added tax

Facts

The veterinary practice X. AG was registered in the register of value-added tax payers by the Federal Tax Administration with effect from January 1, 1995. By submission dated May 22, 1995, it requested that it be determined that services provided by veterinarians and animal clinics for consideration under Art. 8 para. 2 lit. b of the Transitional Provisions of the Federal Constitution (übBest. BV) are exempt from value-added tax. The Federal Tax Administration rejected the request and maintained the tax liability of the veterinary practice from January 1, 1995. X. AG filed a complaint, which was dismissed by the Federal Tax Appeal Commission.

Considerations

The Federal Supreme Court dismisses the complaint. Art. 8 para. 2 lit. b no. 2 of the Transitional Provisions of the Federal Constitution (übBest. BV) only exempts medical treatments on humans from tax. Services provided by veterinarians and animal clinics are not included. The interpretation of the lower instances, according to which Art. 14 nos. 2 and 3 of the Value Added Tax Ordinance (MWSTV) is within the competence granted to the Federal Council by the Constitution, is correct.

A restrictive interpretation of the term "services in the healthcare sector" in Art. 8 para. 2 lit. b no. 2 of the Transitional Provisions of the Federal Constitution (übBest. BV) is…