Facts
X. is the unlimited liability partner of Gallery A., a value-added tax-liable limited partnership. During the period from 2000 to 2003, he withdrew works from his private art collection annually and transferred them to the gallery for sale at auctions. In 2000, the delivery included 42 works of art, of which all but four were sold. The sales in Switzerland and abroad amounted to a total of over 1.3 million Swiss francs. The Swiss Federal Tax Administration (ESTV) subsequently registered X. in the value-added tax register as of January 1, 2000.
Considerations
The Federal Supreme Court confirms that X., in the relevant period, as an art expert who withdraws several dozen works from his significant private collection, sells them to third parties at the auction house in which he is involved, and makes further sales in the following years, is acting independently and sustainably. As a result, he is subject to subjective value-added tax liability.
The Federal Supreme Court states that in assessing subjective value-added tax liability, a broad interpretation of the facts is required in order to ensure the general taxation and tax…