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
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- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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