Imposing material fines on errors that have no impact on VAT revenue is unfair and we concluded that such penalties would most likely not pass the test of the European Court of Justice.
Besides penalties, Member States also appear to impose a wide range of country specific interest rates for late payment of VAT.
These charges range from 0.1 % to 1.85 % per month (equalling an annual interest rate of between 1.2 % and 23.9 %). The average rate is approx. 0.63 % per month (7.8 % annually).
Source VATconsult
See also Reverse charge penalties: which Member State is the penalty champion?
Latest Posts in "European Union"
- Blog: Four tax points, one invoice: how C-167/26 RX challenges well-accepted business processes
- EU Customs Reform: Data Hub, Trusted Traders and New Import Models
- Flashback on ECJ Cases C-409/98 (Mirror Group) – Tenant inducements are not exempt property letting
- Roadtrip through ECJ Cases – Focus on Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)
- Flashback on ECJ Cases C-415/98 (Bakcsi) – Asset allocation determines VAT treatment of a later sale
