European Court of Justice Issues Judgment on Dutch VAT Refund Interest Rules

The European Court of Justice (ECJ) Feb. 22 issued a judgment for Case No. C-674/22, on Dutch VAT rules for the payment of interest on refunds. The taxpayer carried out economic and non-economic activities and applied for a VAT refund following amendments to national legislation. The Tax Authority refunded the VAT amount plus interest from the date of the taxpayer’s request. The taxpayer then sought to recover interest from the date of VAT payment, citing EU law. Upon request for a preliminary ruling, the ECJ held that: 1) an amount of VAT can’t be regarded as being levied in breach ...