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A passenger transport concessionaire has requested clarification on whether subsidies received to cover operating deficits must be included in the VAT taxable base. The Directorate-General for Taxes (DGT) has ruled that, as there is no distortion of competition, these contributions are not considered price-linked subsidies.
This ruling provides legal certainty for transport companies, confirming that operating deficit subsidies do not increase the VAT liability, provided they do not affect competition.
The tax team reviews your specific situation.
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