Denmark Tax Agency Seeks Comments on Draft Control Signal Concerning Tax Refunds Illegal in EU

The Danish Tax Agency Feb. 6 opened a consultation on Draft Control Signal No. 22-0693376, concerning refunds of VAT, payroll tax, and other taxes collected contrary to EU law. The draft explains that: 1) if a customer is unjustly enriched by an excess tax refund, the Tax Agency will reduce the refund to the supplier by the amount collected in violation of EU law; 2) for direct refunds to customers, the customer’s claim is reduced by the supplier’s savings from charging VAT in breach of EU law, if this savings is passed to the customer, such as by VAT deductions ...