Tax investigations can last for many years, and if VAT would not be recoverable during an ongoing investigation, this would have a detrimental effect on the taxpayer’s cash flow. The question before the CJEU is whether tax authorities may defer a VAT refund in full, even though only a small part is the subject of an ongoing inspection. According to the AG , Member States do not have the right to defer the assessment and payment of an undisputed part of the reclaimed VAT for an indefinite period of time until the disputed part of the excess VAT claimed has been adequately inspected.
Source EY
A summary of the opinion can be found HERE
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