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An intercity transport concessionaire sought clarification on whether municipal subsidies intended to offset low occupancy or integrate tariffs were subject to VAT. The DGT ruled that they do not form part of the taxable amount as they do not result in a distortion of competition.
This ruling clarifies that public subsidies aimed at maintaining service levels or tariff stability do not constitute consideration for a service, thus remaining outside the scope of VAT taxation.
The tax team reviews your specific situation.
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