The municipality of Dinkelland carries out both non-economic and economic activities. For non-economic activities, it is entitled to a contribution from the BCF but cannot deduct input tax. General costs may result in a partial VAT deduction and a contribution from the BCF. Changes in the accounting system and tax classification led to a new formula for apportioning input VAT, increasing the right to deduct VAT. The municipality applied for a refund of part of the VAT paid due to errors in its accounts. The Tax and Customs Administration granted the refund and interest on tax, but dismissed the claim for reimbursement of Irimie interest. The CJEU ruled that EU law does not require interest to be paid in cases where the taxable person has not fully exercised the right to deduct input VAT due to errors in accounts and retroactive amendments to VAT calculation rules.
Source BTW jurisprudentie
See also
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- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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