The Authority pointed out that while mitigating distortions for municipal acquisitions, the VAT compensation had created a distortion of competition between undertakings carrying out the same economic activities in sectors exempted from the application of VAT.
Järelevalveamet märkis, et kuigi käibemaksu hüvitamine leevendas moonutusi omavalitsuste hangete puhul, moonutas see samas konkurentsi käibemaksust vabastatud sektoris sama majandustegevusega tegelevate üksuste vahel.