Facts
The [X.] Housing Cooperative, a cooperative with its seat in [Y.] BE, was originally founded to create affordable housing in the sense of the Home Ownership Promotion Act (HCHOA) primarily for the disabled. Later, the purpose of the cooperative was changed and the maintenance and management of the multi-family house Bernstrasse 22 - 22b, [Y.] BE, was established as a new purpose.
The Federal Tax Administration ordered on April 3, 2000, the registration of the [X.] Housing Cooperative in the register for VAT-liable persons. The cooperative lodged an unsuccessful appeal and complaint with the Federal Tax Appeals Commission and argued that it did not meet the criterion of commercial activity.
The [X.] Housing Cooperative filed an administrative court appeal with the Federal Supreme Court on March 26, 2003, and requested that the decision of the Appeals Commission of February 21, 2003, be set aside.
Considerations
The Federal Supreme Court examined whether the [X.] Housing Cooperative is subjectively VAT-liable. According to Art. 17 para. 1 VATO, a person is subjectively VAT-liable if they independently carry out an activity that is associated with the generation of income, whether commercial or professional, even if the intention to make a profit is lacking, provided that their supplies, services, and own use in the country exceed CHF 75,000.-- per year in total.
The Federal Supreme Court found that the [X.] Housing Cooperative carries out a commercial activity, as it had a building constructed that was intended for later sale or in any case for rental. The cooperative had thus fulfilled the requirements for taxation under Art. 8 para. 2 lit. a VATO.
The Federal Supreme Court also affirmed the sustainability of the activity, as the construction of the…