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V1022-23 ·25 April 2023 ·consulta-vinculante Medium impact
Tax

Grants for general interest projects are not subject to VAT if there is no exchange of reciprocal consideration

A non-profit cooperative inquired whether a regional grant for a job placement and training project is subject to VAT. The DGT ruled that the grant does not constitute consideration for a service, nor is it a price-linked subsidy.

In 6 key points

How it affects those involved

This ruling clarifies that grants intended for general interest purposes, which do not involve a reciprocal exchange of goods or services, fall outside the scope of VAT.

Lifecycle

2023-04-25PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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