Ruling 81: Public funding outside scope of VAT

The qualification of the sums as “contributions” excluded from the scope of VAT application is not affected by the presence, in the context of the deeds/measures that govern their disbursement, of clauses that provide for the revocation of funding in the event of violations or negligence on the part of the implementing entity or in the event of failure to timely achieve the objectives of the loan and the repayment of the loan in the event of inaction or failure to use the allocated resources.

Source: ipsoa.it

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