Facts
The case concerns the question of whether value-added tax is owed on radio and television reception fees in Switzerland. A. had paid the reception fee, but had not paid the 2.5% value-added tax included in it. The Swiss Collection Office for Radio and Television Reception Fees (Billag) ordered that A. must pay the value-added tax.
A. filed a complaint against this order. The Federal Administrative Court initially did not enter into the complaint, as it considered the civil courts to be competent. Thereupon, A., Billag, and the Federal Department of the Environment, Transport, Energy and Communications (DETEC) filed a complaint with the Federal Supreme Court. This referred the matter back to the Federal Administrative Court for a substantive assessment.
The Federal Administrative Court dismissed A.'s complaint. Thereupon, A. filed a complaint in public law matters with the Federal Supreme Court.
Considerations
The Federal Supreme Court upholds the complaint and sets aside the contested decision. It concludes that the radio and television reception fees are not subject to value-added tax.
The key point is that neither the Confederation nor Billag provide the fee payers with a service in the sense of an exchange of services. The reception fee is used to finance the public radio and television program offerings, but there is no direct connection between the fee and the consumption of the financed…