Interest on excess VAT not due if debt from taxpayer errors: ECJ clarifies

• The European Court of Justice ruled that taxpayers are entitled to interest on undue VAT payments if the payment is due to national legislation incompatible with EU law
• The case involved a municipality seeking a refund of excess VAT due to changes in accounting rules and misclassification of activities
• The Court stated that taxpayers have the right to reimbursement of taxes and losses incurred due to early payment, if the tax was collected in violation of EU law
• The Court clarified that VAT collected without the right to deduction constitutes a collected amount
• However, the tax can only be considered collected in violation of EU law if the initial calculation methods are incorrect

Source: eutekne.info

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