No Remission of Interest on VAT Arrears Despite Mutual Legal Error, Court Rules

No remission of interest on VAT arrears due to mutual legal error; even if both parties misunderstood the VAT treatment of intra-community trade, interest is still owed. The court held that a mutual legal error does not constitute grounds for equitable relief, as the taxpayer gained a liquidity advantage from the unauthorized input tax deduction. EU law does not prevent the charging of interest.

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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