The District Court of Gelderland ruled that the recipient does not have to pay recovery interest due to administrative errors by the municipality. The municipality submitted incorrect VAT declarations and received contributions from the VAT compensation fund, leading to corrections and VAT refunds. The municipality’s request for reimbursement of recovery interest was rejected, as the Court of Justice of the European Union found that the municipality had not fully exercised its right to deduct VAT due to errors in its accounts.
Source Taxlive
