Facts
The [X. AG] operates a sports center with fitness, aerobics, gymnastics, and spinning offers. The Federal Tax Administration has imposed a VAT claim of CHF 9,380.-- on the [X. AG] for the 1st quarter of 2001, as the turnover from the fitness centers was not declared at 100%, but only at 50%. The [X. AG] has lodged a complaint against this decision and claimed that its services are to be qualified as exempt educational services within the meaning of Art. 18 No. 11 VATA.
The Federal Tax Appeals Commission has dismissed the complaint and found that the services provided by the [X. AG] do not constitute exempt turnover. The [X. AG] has subsequently filed a complaint with the Federal Supreme Court.
Considerations
The Federal Supreme Court has dismissed the complaint and found that the services provided by the [X. AG] are not to be qualified as exempt educational services within the meaning of Art. 18 No. 11 VATA. The court has found that the services of the [X. AG] primarily serve physical fitness and well-being and not education, further education, or the acquisition of skills.
The court has also found that the services claimed by the [X. AG] are not to be qualified as main services, but as ancillary services that share the fate of the main service. The main service in this case is physical fitness and well-being, while the ancillary services are the instruction and care of customers.
The court has also dismissed the complaint of the…