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V3654-15 23 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · precio público

School transport services provided by a public entity via public fees are subject to 10% VAT

A regional council has enquired whether the school transport service it provides by delegation is subject to VAT and if it can deduct the tax incurred. The DGT has ruled that, as it receives a public fee, the activity is subject to VAT at the reduced rate of 10%.

The question raised

Question raised: Whether, in the event of approving a public fee, VAT of 10 percent would have to be charged and, if so, whether the input VAT amounts are deductible.

The DGT's ruling

The provision of passenger transport services carried out by Public Administrations is subject to VAT when there is consideration of an economic nature, such as a public fee. The applicable tax rate is the reduced rate of 10%. The right to deduct input VAT will depend on whether taxable and non-taxable operations are carried out jointly, and a reasonable and homogeneous imputation criterion must be applied.

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