- In Switzerland, the acquisition, holding, and sale of participations is considered a business activity for VAT purposes
- A participation is defined as shares in the capital of other companies held with the intention of permanent investment and conveying significant influence
- The Federal Administrative Court clarified that a 10% shareholding is considered a participation, but holdings below 10% require evidence of significant influence
- The court ruled that a loan does not constitute a qualified participation for VAT purposes
- The decision emphasized the need for evidence of significant influence in determining a qualified participation
Source: primetax.ch
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
