The Latvian taxpayer, a non-profit organization, implements state aid schemes financed by the European Regional Development Fund to train ICT professionals for promoting innovation and industry development. The association outsources the training services to third parties. Despite being a non-profit, it is considered a taxable person and entitled to deduct input tax for the projects. The Court concluded that the taxpayer was making a taxable supply and entitled to deduct associated input tax, including subsidies from a European fund.
Source KPMG
See also
- ECJ C-87/23 (Latvijas Informācijas un komunikācijas tehnoloģijas asociācija) – Judgment – Subsidies paid by a fund to specific service providers for a particular service are included in the taxable amount
- Roadtrip through ECJ VAT Cases – Focus on Taxable Amount – General Rule (Art. 73)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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