OFCOM must refund value added tax
The Federal Office of Communications (OFCOM) must repay the value-added tax collected in connection with the radio and television reception fee. This was the decision of the Federal Administrative Court in the case of the private individual who successfully took this fundamental issue to court.
In its ruling published on Thursday, the Federal Administrative Court states that there was no legal reason to levy value-added tax on fee payers.
In the present case, the person concerned demanded a refund of the VAT he had paid as of the end of January 2007. The amount in question is 45.35 Swiss francs. In addition, 5 percent interest is to be paid on this amount from the date of default.
Open questions
In October 2015, the Foundation for Consumer Protection (SKS) and its partners in the Alliance of Consumer Protection Organizations (FRC and ACSI) had demanded that Billag repay the VAT on radio and television fees since 2005 on behalf of around 5,000 people.
Her case and three others are still pending before the Federal Administrative Court. The question of the statute of limitations remains unresolved in the current ruling. Sara Stalder, Executive Director of the Foundation for Consumer Protection, hopes that this will soon be clarified in the decision on the SKS case. According to Stalder, it is also unclear whether the claim for reimbursement applies to all fee payers or only to those who reclaim the amounts. The SKS is therefore launching an appeal to OFCOM on its website on Thursday, which all fee payers can join.
Decision in principle
In April 2015, the Federal Court ruled that the radio and television fee is not subject to VAT. This is because the fee payer does not receive a direct service from the federal government. However, such an exchange relationship forms the basis for the levying of value added tax.
The Confederation does not accept the fee in order to provide a radio or television program in return. Nor does it buy programs from SRG or other providers. Rather, Billag collects the reception fee on behalf of the Confederation in order to subsidize the SRG and other program providers.
These therefore receive benefits from the federal government in order to fulfill a purpose deemed worthy of support by law. However, subsidies are not subject to value-added tax because no specifically defined consideration is expected in return. SRG applied for party status in the legal dispute over value-added tax. The Federal Court rejected the request in November last year. (SDA/Photo: SRF)
