EU Law on Accounting Errors and VAT Refunds: Payment of Interest Clarified by ECJ

• EU law does not require a State to pay interest on VAT refunded to a taxable person if it is due to calculation errors by that person
• State is not liable to pay interest if VAT refund is partly due to errors in accounts and partly due to retroactive changes in deductible VAT rules
• CJEU analyzed how EU law regulates interest payment in case of VAT refund due to errors in accounting or changes in deductible VAT calculation
• Persons affected by improper VAT collection are entitled to refund of overpaid amounts, but not always entitled to interest
• Court examined criteria and methods for determining deductible VAT, emphasizing taxable person’s responsibility for correct application
• If calculation errors are imputable to taxable person, they are not entitled to interest, only to recovery of VAT.

Source: filipandcompany.com

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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