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A concessionaire company has enquired whether free school transport services are subject to VAT and if they can deduct input VAT. The DGT has determined that payments made by the Administration do not constitute consideration or subsidies linked to the price, and that input VAT is deductible provided the entity only carries out taxable transactions.
This ruling clarifies the VAT treatment of public funding for free school transport, confirming it does not constitute consideration and outlining the conditions for input VAT deduction.
The tax team reviews your specific situation.
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