Facts
The [A.] association, an association within the meaning of Art. 60 ff. CC, promotes, directs and controls Swiss harness racing and breeding. It has been registered in the register of VAT-liable persons since January 1, 1995. Following a review of the tax years 1995/96, the Federal Tax Administration required the association to pay VAT in a certain amount. This additional claim was based on various corrections to the taxpayer's self-assessment, with the offsetting of allegedly directly represented transactions making up a significant part.
The association contested the tax claim and appealed to the Federal Supreme Court. The Federal Tax Administration and the Federal Tax Appeals Commission called for the appeal to be dismissed.
Considerations
The Federal Supreme Court examined the question of whether the appellant was to be considered a direct or indirect representative within the meaning of Art. 10 VATO. It concluded that the appellant had acted as an indirect representative, as it had not acted explicitly on behalf and for the account of the represented parties.
The court stated that the conditions for the application of Art. 10 para. 1 VATO were not met, as the appellant had not acted explicitly on behalf and for the account of the represented parties. It is not sufficient if the representative merely notifies the third party that it is acting as a representative, without disclosing the name and address of the represented party.
The court also examined the question of whether an exchange of services was present and concluded that the payments received by the appellant from the race…