My patron is hurting my VAT

The taxpayer is a private law foundation active in research on certain diseases and in public health prevention in this area. It is of public interest and does not pursue economic gain. It is liable for VAT according to the effective method, on the agreed-upon considerations. When the taxpayer receives a donation of CHF 60 or more, it offers the generous donor a free screening test, a voucher of limited duration, to be used at certain pharmacies. The taxpayer declares all donations as donations for VAT purposes.

The AFC (main TVA division) considers these screening tests for certain donors as consideration for the service «donation of CHF 60 or more».

The Federal Administrative Court (TAF) refers to the VAT treatment of sponsorship (see 2.5.2). Subsequently, they address the link between a public benefit objective and entrepreneurial activity: one does not exclude the other. Finally, they consider that the provision of free tests is consideration with a value of CHF 60 for all donations of CHF 60 and more. The fact that the recipient of the consideration (the generous donor) uses or does not use the donation is irrelevant for VAT purposes.

The judgment is in German.

TAF, Judgment A-358-2024, of 31 October 2025