The European Union Court of Justice ruled that it is not against EU law for the municipality of Dinkelland to not receive interest payments. This decision is based on the fact that the municipality did not fully exercise its right to deduct VAT due to errors in its accounts. The municipality applied for VAT refunds and reimbursement of tax interest, but the recipient rejected the request. The CJEU ruled that the municipality is not entitled to interest reimbursement in connection with the VAT refund, as it did not fully exercise its right to deduct VAT due to errors in its accounts. The court also noted that the municipality’s situation was partly the result of retroactive changes in calculating deductible VAT, which were adopted under its sole responsibility.
Source Taxlive
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Latest Posts in "European Union"
- Comments on C-513/24 (Oblastní nemocnice Kolín) – Obligation for the presence of goods in hospital not decisive for VAT deduction
- EPRS Report: Targeting VAT Fraud: How the Reverse Charge Mechanism Protects EU Revenues
- ECJ & General Court VAT Cases decided in 2026
- Comments on ECJ C-515/24: ECJ Upholds Spanish VAT Deduction Ban for Entertainment Expenses at Accession
- ECJ VAT C-513/24 (Oblastní nemocnice Kolín) – Judgment – Regulatory requirement alone insufficient for pro-rata VAT deduction for hospital equipment
