Unjustly levied VAT leads to interest compensation: Court ruling

• The Court of Zeeland-West-Brabant ruled that a business is entitled to a refund of collection interest due to incorrectly paid VAT.
• The business paid VAT in the Netherlands for distance sales to Belgian customers, but the VAT was actually owed in Belgium.
• After receiving reassessments from the Belgian Tax Authorities and repayment of the incorrectly paid VAT in the Netherlands, the business requested a refund of collection interest from the Tax Authorities.
• The dispute was whether the business was entitled to a refund of collection interest.
• The Court ruled that the VAT paid in the Netherlands was ultimately paid in violation of EU law, entitling the business to a refund of collection interest of €188,832.75.

Source: taxence.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.

---

---