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A joint venture (UTE) holding a contract for free school transport services requested a ruling on whether services provided by its partners are subject to VAT and whether public administration contributions constitute subsidies linked to price. The DGT ruled that services provided by partners are subject to VAT and that the amounts received from the Administration are neither consideration nor price-linked subsidies.
This ruling clarifies the VAT treatment for joint ventures (UTEs) in public service contracts, specifically regarding the taxability of intra-group services between partners and the classification of public funding.
The tax team reviews your specific situation.
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