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A query was raised regarding whether aid received by transport operators from local and regional authorities to compensate for fare reductions is subject to VAT. The DGT ruled that these contributions are neither price-linked subsidies nor consideration for taxable transactions.
This ruling clarifies that financial support aimed at maintaining affordable public transport fares does not constitute taxable income for operators, provided it is not directly linked to the price of the service.
The tax team reviews your specific situation.
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