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An urban transport concessionaire enquired whether subsidies received to reduce ticket prices for certain groups should be subject to VAT. The DGT ruled that, as there is no distortion of competition, these contributions are not considered price-linked subsidies.
This ruling clarifies that subsidies intended to support specific passenger groups do not increase the taxable base for VAT, provided they do not distort market competition.
The tax team reviews your specific situation.
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