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Interest Is Due on Late Tax Refunds, Top EU Court Rules

May 12, 2021, 12:49 PM

Austria must pay interest on value-added tax credits that aren’t refunded to taxpayers “within a reasonable period of time,” the European Union’s top court ruled Wednesday.

Late interest is due both when the tax credit results from VAT deductions exceeding the amount of VAT due and when the tax credit arises because of cancellation, refusal, or total or partial non-payment, the Court of Justice of the European Union said in its ruling.

Both scenarios “give rise to the payment of interest where it is not made within a reasonable period of time,” the ruling said. “It is for the ...

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