NPOs regularly receive grants from national or European public authorities. The latter intend to finance activities deemed to be in the public interest, and the recipient of the subsidies is responsible for justifying the use of the funds received and for monitoring their use.
Obtaining subsidies will essentially raise two questions in regards to VAT:
– Should the grant be subject to VAT?
– Does the grant influence the association’s right to deduct VAT?
Source: vatdesk.eu
Latest Posts in "European Union"
- CJEU AG: Separate Legal Entities Must Act Independently to Be Separate VAT Taxable Persons
- CJEU Rules on VAT Deduction Denial and Taxation of VAT Refund Services in Hungary
- EU Advances Customs Reform with Central Authority and Unified Data Hub System
- Essential Steps for Multi-Country EU VAT Registration: Triggers, Documentation, and Compliance Tips
- ECJ VAT C-544/24 (Nekilnojamojo turto valdymas) – AG Opinion – National law’s fixed late payment interest aligns with EU law
