The sums paid by a Region to a company to manage contracts relating to public road transport are subject to VAT. This is the main clarification provided by the Revenue Agency in its response to ruling no. 316. The in-house company is also entitled to the deduction of the VAT due or paid for the purchase of goods and services, if and to the extent that such purchases concern the carrying out, downstream, of taxable transactions or similar to the latter for the purposes of the deduction, as for this purpose the qualification of the sums disbursed for the financing of the activity carried out is irrelevant.
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