Swiss TV licence fees are exempt from VAT - court

Per 1 May, the Swiss TV licence fee is no longer subject to value-added tax (VAT), thus decreasing from CHF 462 to CHF 451 per year for households, according to the federal office of communications Bakom. This a result of a ruling published on 29 April by the Federal Supreme Court that the licence fee is no longer subject to a VAT rate of 2.5 percent. This decision has no impact on the planned referendum with regards the revision of the Radio and Television Act scheduled for 14 June of this year. This revision envisages an additional reduction in the amount of the radio and television licence fee to approximately CHF 400 and an exemption for businesses with a turnover less than CHF 500,000.