- Complexity of Payment Relationships: Determining the direct link between a payment and a service becomes increasingly complex with the involvement of a third party, as illustrated by a case where a local authority compensated a passenger transport operator for losses incurred.
- Court’s Reasoning on Subsidies: The Court highlighted that the subsidy does not influence ticket prices directly, stating that even without the subsidy, ticket prices would need to increase, which seems contradictory given that subsidies typically lower prices.
- Independence of Subsidy from Service Provision: The Court concluded that the subsidy is not tied to the provision of passenger transport since it would still be paid regardless of whether any passengers traveled, indicating that the payment is for something other than the transport service itself. This is further emphasized by the inverse relationship between ticket sales and the subsidy amount.
Source Fabian Barth
See also
- ECJ Case C-615/23 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – Flat-Rate Compensation for Public Transport Services Is Not Taxable Under VAT – VATupdate
- Briefing Document: VAT Treatment of Local Authority Compensation for Public Transport Services (Case C‑615/23)
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
