When a private car sale becomes a VAT-liable dealer activity

The court had to decide whether a private individual was liable for VAT on the purchase and sale of luxury cars. Since the vehicles were only kept for a very short time, numerous purchases and sales took place and the turnover of around CHF 1.5 million clearly exceeded private needs, the court ruled that the activity constituted systematic trading. In addition, the person concerned acted like a dealer and would have had an unfair competitive advantage without taxation. He was therefore classified as liable for VAT and his appeal was dismissed. (Source: BGE A-3867/2025 of 24 November 2025)