Interest on VAT refund claims: FG Baden-Württemberg ruling on interest rates under EU law

• The FG Baden-Württemberg had to determine whether interest claims by entrepreneurs against the tax authorities can be based on earlier start dates and higher interest rates under EU law.
• The EU Directive 9/2008/EG only applies to cross-border cases, not purely national ones.
• According to Article 183 MwStSystRL and EU case law, there is no basis for higher interest rates or earlier start dates for interest on VAT refunds for the year 2019.
• A 1.8% interest rate for 2019 does not violate EU law principles and is therefore not unlawful.

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.

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