Membership fee
Question
Are membership fees subject to VAT?
Answer
Clubs and associations may impose membership fees if this is stated in their Articles of Association. If fees are imposed, the question arises as to whether they are subject to VAT. The Swiss Federal Supreme Court ruled that the crucial factor in assessing this question is whether there is an exchange of services between the club/association and its members.
If the member receives a specific benefit in return for the contribution he or she has made, this is referred to as a "non-genuine" club/association fees. These contributions must be recognised for VAT purposes. If, on the other hand, the fees set out in the Articles of Association are used in accordance with the purpose of the club/association and the associated services ¬benefit all members, these are "genuine" membership fees and are therefore not subject to VAT.
Question
Is it permitted for an association not to charge membership fees?
Answer
Yes, an association is under no obligation to charge membership fees. Under Article 71 of the Swiss Civil Code (ZGB), an association is even only permitted to demand membership fees if this issue is expressly governed in its articles of association. Here, the articles of association may specify a minimum or maximum amount or state a range. Since the liability of members has been excluded by law, it is no longer necessary for a fee amount to be defined in the articles of association.
The setting of a fixed fee amount in the articles of association is not advisable, as the articles of association will otherwise need to be updated each time the fee is amended.
Question
Should the annual/membership fee be included in the agenda items of the general meeting even if it is to remain the same?
Answer
The amount of the membership fee is generally determined by the general meeting. If the exact amount is defined in the articles of association, an increase or reduction can only be implemented by means of an amendment to the articles of association. In such cases, the item of business only has to be added to the agenda items upon a corresponding motion being put forward by the committee or a member.
If the fee amount is not specified in the articles of association, its definition is part of the ordinary business of the general meeting. In such cases, it is advisable to include the "membership fee" agenda item each year. The committee can then, for example, propose that the current fee is maintained. The members can, however, put forward countermotions.
Question
In our association, trainees and students do not pay a membership fee. Are they still entitled to vote?
Answer
As all members have the right to equal treatment, members who are exempted from the payment of a membership fee also have full voting and electoral rights. In fact, equal treatment would also apply to the membership fee. It is, however, possible to govern objectively justified differences in the articles of association.
