- The European Court of Justice ruled that compensations paid to public transport operators are not subject to VAT.
- The ruling was issued on May 8, 2025, in case C-615/23.
- The case involved the Director of National Tax Information against P. S.A. regarding VAT on compensations paid by local government units.
- The court confirmed the arguments presented by the Advocate General.
- The compensation does not directly affect the price of transport services, which is set by the organizer.
- The main purpose of the compensation is to cover losses related to transport activities, not to finance specific services.
- Compensation is not paid specifically for providing transport services to a particular customer.
- It is granted retrospectively and calculated based on vehicle kilometers, not the identity or number of service users.
- The court emphasized that the impact of compensation on the final price does not determine its inclusion in the VAT base.
Source: crido.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.
