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An intercity transport company has enquired whether contributions from the Administration to compensate for decreased revenue or increased service frequency are subject to VAT. The DGT has ruled that these contributions are not price-linked subsidies because they do not result in market distortion.
This ruling clarifies that financial support aimed at maintaining the economic viability of public transport services does not constitute a price-linked subsidy, thereby exempting such contributions from VAT.
The tax team reviews your specific situation.
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