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An intercity transport company has enquired whether financial contributions received to compensate for economic imbalances (due to fare integration, low occupancy, or increased service frequency) are subject to VAT. The DGT has ruled that these contributions are neither price-linked subsidies nor consideration, as the service does not create a distortion of competition.
This ruling clarifies that compensatory payments intended to maintain the financial viability of public transport services do not constitute taxable consideration, providing legal certainty for transport operators regarding VAT exemptions on such funds.
The tax team reviews your specific situation.
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