VAT Exemption on Services Provided Abroad

Facts

X. SA, a Swiss holding company, provided services to the Spanish company Y. SA. It declared these services as VAT-exempt, but did not provide the required supporting documents. The Federal Tax Administration issued supplementary tax assessments for the fiscal periods from 1996 to 2001, considering that the services were not exempt. The Federal Tax Appeal Commission dismissed X. SA's appeals. X. SA then filed an administrative law appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the appeal. It considered that the documents provided by X. SA did not clearly establish the nature of the services provided to Y. SA, which is necessary to determine their place of use or exploitation and, consequently, their VAT exemption. Invoices and other documents established retrospectively have no probative value. Article 45a of the Ordinance on the VAT Act, which deals with formal defects, does…