- CJEU ruled that lump-sum compensation to public transport operators by local governments is not subject to VAT.
- The judgment aligns with previous practices regarding public subsidies and tax bases.
- The case involved a transport company receiving compensation to cover losses from providing services.
- The national court questioned if the compensation should be part of the VAT tax base.
- CJEU determined the compensation does not directly impact service prices, thus not taxable.
- The subsidy was based on vehicle kilometers, not passenger numbers or ticket sales.
- CJEU rejected the idea of compensation as mutual benefit or payment for services.
- The local government is not the service beneficiary; passengers pay through ticket prices.
- The Court dismissed the argument that compensation is for the carrier’s readiness to provide services.
Source: mddp.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
