Value added tax

If sales of more than CHF 100,000 are achieved, associations are also subject to value-added tax. (For voluntarily run sports and cultural associations and non-profit organisations, the threshold lies at CHF 250,000.) Value-added tax is excluded from any tax exemption.

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.

Tax liability for associations (vitamin B)