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An intercity transport company enquired whether compensations received from the Administration for tariff integration and low occupancy were subject to VAT. The DGT ruled that they are not, as they do not constitute price-linked subsidies since no distortion of competition exists.
This ruling clarifies the VAT status of public compensations for transport operators, confirming that such payments do not trigger VAT liability if they do not distort competition.
The tax team reviews your specific situation.
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