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V2451-23 13 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · contraprestación

Kit Digital grants are not subject to VAT as they do not constitute consideration

A farmer inquired whether the Kit Digital Programme grant for digitalisation is subject to VAT. The DGT ruled that these amounts do not constitute consideration for a transaction, nor are they price-linked subsidies.

The question raised

To determine the taxation applicable to the granting of the subsidy for the purposes of Value Added Tax.

The DGT's ruling

The amounts received for the adoption of digitalization solutions do not constitute consideration for an operation subject to VAT. There is no legal relationship of exchange of reciprocal benefits between the applicant and the entity granting the subsidy. They are also not considered subsidies linked to the price of operations. Therefore, their receipt is not subject to the tax.

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