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V0024-18 10 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Subsidies covering social tariffs in public transport are not included in the VAT taxable amount

A public transport concessionaire has enquired whether subsidies received to compensate for social tariffs for certain groups should be subject to VAT. The DGT has ruled that, as there is no distortion of competition, these contributions are not considered price-linked subsidies.

The question raised

Question raised: Liability for Value Added Tax on subsidies received.

The DGT's ruling

Subsidies intended to finance public services where no significant distortion of competition exists are not considered linked to the price nor do they form part of the consideration for the transaction. In the case of transport services with tariffs set by the Administration, the financial contribution does not form part of the VAT taxable base. Likewise, if the entity carries out exclusively taxable operations, it may deduct the entirety of the tax incurred on its acquisitions.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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