Repayment of value added tax on reception fees with interest on arrears

The money is to be paid out in a lump sum to around 3.7 million households - if Parliament approves the procedure, in 2021. At the beginning of the consultation process, it was still assumed that 3.4 million households would be eligible. On Wednesday, the Federal Council adopted the dispatch on the legal basis required for the payment.

Maximum 185 million francs

The background to this are rulings by the Federal Supreme Court and pressure from parliament. In April 2015, the judges in Lausanne ruled that VAT may not be levied on reception fees. In 2018, they ruled that the federal government must pay back the taxes levied between 2010 and 2015.

The Federal Council intends to repay a maximum of CHF 185 million, CHF 20 million more than originally planned. Based on the consultation process, it is taking into account 5% interest on arrears for two years, which amounts to CHF 17 million. There is also a reserve of CHF 3 million in case the number of beneficiaries increases.

This had already been the case since the start of the consultation and up to the adoption of the dispatch: the draft for the consultation still mentioned 3.4 million households that were to receive the refund. Based on a current estimate, however, the figure is now 3.7 million households.

However, thanks to the inclusion of interest on arrears, the credit per household remains at CHF 50 despite the higher number of recipients. The Federal Council wants to reimburse the money as a lump sum. This means that households do not have to actively register and there is no need to clarify complex and costly individual cases, writes the Federal Council.

Not for companies

The Federal Council does not consider it appropriate to refund the wrongly levied VAT to companies. Most companies would have been able to deduct the input tax and would not have suffered any economic losses as a result. The others could register their claim directly with the Federal Office of Communications (OFCOM).

In total, companies paid around CHF 5 million in value-added tax on reception fees between 2010 and 2015. Only five of the 43 participants in the consultation would have demanded a refund to businesses. Parliament, however, has spoken out in favor of this, with the referral of a motion by National Councillor Sylvia Flückiger (SVP/AG). (SDA)