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A comarcal authority asked whether modernisation works on a waste plant were subject to subject passive investment and whether the received subsidy for financing them was subject to VAT. The DGT confirms that subject passive investment applies and that the subsidy does not constitute part of the VAT base.
The subject passive investment rule applies to construction works on industrial facilities, and public subsidies tied to the price of works are not included in the VAT taxable base.
The tax team reviews your specific situation.
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