Coach operator’s VAT refund appeal dismissed as public transport service found outside group tourism exemption

The High Court dismissed the appeal of a coach operator challenging the refusal of a substantial VAT refund in relation to its operation of an interurban express bus route. The operator sought repayment of VAT paid on coaches under tax provisions intended to benefit businesses primarily engaged in the group transport of tourists. The court concluded that the operator was not eligible for the refund, as its business was not principally or exclusively the carriage of tourists under contracts for group transport, but rather the provision of a public transport service accessible to all members of the public. The court also found that the legislative provisions require multiple contracts for group transport focused on tourists, and that the vehicles in question were primarily used for general public transport, causing the claim to be disqualified. The decision reinforces the strict interpretation of tax exemptions and derogations, upholding the predominant purpose and contractual framework as decisive criteria.