European Union (status June 30, 2022)
Which Member State is the most expensive for late payment of VAT? And how far do you need to go back in time when correcting errors?
From 2 November 2022, a new interest rate of 3.38% for sales tax and appeal will apply
Legal interest rates: 8% late payment interest for VAT from 01 January 2023 (currently 9.6% per year).6% default interest payable by the State from 01 January 2023 (currently 9.6% in some cases and 7% in others)
Concerning VAT corrections, an interest surcharge of approximately 30% could apply to corrections relating to the oldest period
Law provides that the interest rate for interest due according to § 233a AO is reduced retrospectively to 0.15% per month (1.8% per annum) for periods from 1 January 2019
Increased of the interest rate for missing or late VAT payments from 0.33% to 0.6% per month.
The last update available is dated 16 September 2022, and the interest rates applicable are the following:
- Standard interest rate is 16,5% per year.
- Reduced interest rate is 8,25% per year.
- Increased interest rate is 24,75% per year.
Increase of the base interest rate from 1.25% to 2.5% as of November 1, 2022
UK new penalty and surcharges system in January 2023
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