Compatibility of late payment interest on turnover tax with Union law: FG Düsseldorf rulings

• The imposition of interest under § 233a AO is a common practice, especially after external audits.
• The constitutionality of the interest rates was challenged by the Federal Constitutional Court, leading to a change in the law.
• The question now is whether the imposition of interest on VAT payments is compatible with EU law.
• A summary examination found that § 233a AO does not violate EU law.
• The compatibility of § 233a AO with the principle of neutrality does not need to be examined in a summary examination.
• A summary examination found no violation of the principle of proportionality in § 233a AO.
• The interest imposed under § 233a AO is not considered a punitive measure.
• The requirements for sanctions set by the European Court of Justice do not apply to the interest imposed under § 233a AO.
• The considerations of the Federal Fiscal Court regarding the compatibility with EU law were not included in the summary examination.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---