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A mixed-economy company has requested a ruling on whether transfers received to fund sanitation infrastructure are subject to VAT. The Directorate General for Taxes (DGT) has ruled that, as there is no legal relationship involving an exchange of consideration, these amounts do not constitute consideration or subsidies linked to the price.
This ruling clarifies that certain funding transfers for public infrastructure do not trigger VAT obligations, provided they lack a reciprocal exchange of services.
The tax team reviews your specific situation.
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