Facts
The dispute opposes the Federal Tax Administration to X., a lawyer registered in the register of persons liable to value-added tax (VAT) since January 1, 1995. The person concerned indicated, when filing her quarterly accounts for the year 1995, that the provisions on fees received since January 1 were not included in her turnover subject to VAT.
By formal decision of July 4, 1996, confirmed on appeal on January 30, 1997, the Federal Tax Administration estimated that such provisions were advance payments giving rise to the tax claim, in accordance with art. 34 letter a ch. 2 of the Federal Council's ordinance of June 22, 1994 governing VAT (VATO).
On March 3, 1997, X. appealed to the Federal Commission of Appeals in Tax Matters, which admitted the appeal and annulled the aforementioned decision of January 30, 1997, considering that the provisions on fees were not taxable considerations at the time of their receipt.
The Federal Tax Administration acted through the administrative law appeal, asking the Federal Court to annul this decision and to state that X. must declare the provisions on fees during the accounting period in which she receives them.
Considerations
The Federal Court admitted the appeal, annulled the contested decision, and confirmed the decision on appeal. According to art. 4 letter b VATO, subject to VAT are the services provided for a fee on Swiss territory. The tax is calculated on the consideration, which includes everything that the recipient spends in exchange for the delivery or provision of services.
The provision on fees paid to a lawyer is a consideration within the meaning of art. 26 al. 2 and 34 letter a ch. 2 VATO, as it represents the consideration for the services of the agent and the expenses he has advanced. The guarantee represented by the provision is due solely to its advance nature, and not to a real or personal security.
The Federal Court considered…