Facts
The Swiss Commercial Association (SCA) is the professional organization of commercial and related professions. It operates various profit centers with separate accounting and has been registered in the VAT register since January 1, 1995. In the course of an external audit, the Federal Tax Administration issued supplementary invoices that obliged the SCA to pay additional VAT. The SCA lodged a complaint against the ruling of the Federal Tax Administration and later against the judgment of the Federal Administrative Court, Division I.
The complaint concerns the subsequent charging of VAT for various services, including the conduct of professional exams and apprenticeship exams, the provision of services abroad, the operation of practice firms, the conduct of seminars, and the provision of services to HWV Zurich and VSAM Zurich.
Considerations
The Federal Court examined the complaint and came to the conclusion that the services provided by the SCA in the area of professional exams and apprenticeship exams are not exempt from VAT, as they are preliminary transactions that serve the creation of the last, VAT-exempt transaction. The Federal Tax Administration has determined the amount of examination fees received based on the corresponding cost centers, which is not objectionable.
The Federal Court also found that the services received by the SCA abroad, in particular the consulting services of a lawyer in London, are not exempt from tax, as they do not have a close connection to the property and therefore become available in the country for use or exploitation.
The services provided by the SIB to VSAM Zurich and HWV Zurich are taxable, as they are preliminary services for educational services and not the…