- ECJ clarified when businesses can start earning interest on VAT refunds delayed by tax authorities
- Interest should be paid for the entire time during which the taxpayer was without funds levied in violation of EU law
- Case of Gemeente Dinkelland involved a refund of VAT from Dutch Tax Administration
- ECJ ruled that interest on the repayment did not start to accrue from the date when VAT was originally overpaid
- EU law does not require payment of interest if refund is partly due to taxable person’s errors in deducting input VAT and partly due to retroactive changes in rules established
Source: grantthornton.nl
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.
