Federal Act on Value Added Tax

¹Do­mest­ic tax shall be levied on sup­plies made by tax­able per­sons on Swiss ter­rit­ory for con­sid­er­a­tion; they are tax­able un­less this Act provides oth­er­wise.

²Due to the ab­sence of any sup­ply, the fol­low­ing flows of funds in par­tic­u­lar do not qual­i­fy as a con­sid­er­a­tion:

a.

sub­sidies and oth­er pub­lic law con­tri­bu­tions, even if they are paid on the basis of a pub­lic ser­vice agree­ment or a pro­gramme agree­ment pur­su­ant to Art­icle 46 para­graph 2 of the Fed­er­al Con­sti­tu­tion;

b.

funds that tour­ist of­fices re­ceive ex­clus­ively from pub­lic law tour­ist charges and which they em­ploy on be­half of pub­lic au­thor­it­ies for the pub­lic good;

c.

con­tri­bu­tions from can­ton­al wa­ter, sewage or waste funds to waste dis­pos­al in­sti­tu­tions or wa­ter­works;

d.

dona­tions;

e.

con­tri­bu­tions to busi­nesses, in par­tic­u­lar in­terest free loans, re­cap­it­al­isa­tion pay­ments and writ­ten-off debts;

f.

di­vidends and oth­er profit shares;

g.

con­trac­tu­ally or leg­ally reg­u­lated cost shar­ing pay­ments that are paid by an or­gan­isa­tion­al unit, in par­tic­u­lar by a fund, to par­ti­cipants in a branch of the in­dustry;

h.

de­pos­its in par­tic­u­lar on pack­aging and con­tain­ers;

i.

pay­ments of dam­ages, sat­is­fac­tion and the like;

j.

re­mu­ner­a­tion for em­ploy­ment, such as board mem­bers' and trust­ees’ fees, re­mu­ner­a­tion of au­thor­it­ies or pay;

k.

re­im­burse­ments, con­tri­bu­tions to and al­low­ances for sup­plies of goods de­livered abroad that are ex­empt from the tax un­der Art­icle 23 para­graph 2 num­ber 1;

l.

charges, con­tri­bu­tions or oth­er pay­ments re­ceived for sov­er­eign activ­it­ies.