Full VAT deduction possible for subsidised school transport providers carrying out only taxable operations
Technical details
Summary
The DGT confirms that transport companies providing subsidised school transport (exempt from VAT) and also third-party transport services (taxable and exempt) may claim full VAT deduction if they carry out only taxable and non-exempt operations.
In 6 key points
How it affects those involved
Companies offering subsidised school transport and other transport services may claim full VAT deduction provided they only carry out taxable operations.