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V2373-23 ·5 September 2023 ·consulta-vinculante Medium impact
Tax

Subsidies to promote employability must be included in the VAT taxable amount as price-linked subsidies

A cooperative has requested a ruling on whether a regional subsidy for job integration programmes should be taxed for VAT purposes as a price-linked subsidy. The DGT has ruled that it does constitute a price-linked subsidy, while also examining the possibility of an exemption based on social assistance.

In 6 key points

How it affects those involved

This ruling clarifies that subsidies intended to reduce the cost of services for the end user must be integrated into the VAT taxable base, preventing the artificial reduction of the tax burden through direct subsidies.

Lifecycle

2023-09-05PublishedPublished 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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