In this case, a Hungarian taxpayer sought compensation for losses incurred due to the short-term money market credit interest rate applied under the “paid consideration condition” for refunds of excess deductible VAT. The taxpayer argued that these losses resulted from inflation that occurred between the reporting period and the refund of the interest. A Hungarian court sought a preliminary ruling to determine whether Hungary’s rules violated EU Directive 2006/112/EC, which governs the common VAT system.
Source: globalvatcompliance.com
