Interest Payments in Case of Amounts Levied in Breach of Union Law: An Analysis Based on Three Recent CJEU Judgments in the Field of VAT

The Court of Justice of the European Union (CJEU) has ruled that amounts levied in breach of Union law must be repaid, and those affected must be compensated for any losses incurred, including interest. However, it was not clear whether ‘amounts levied in breach of Union law’ only covers situations where amounts are levied due to a position taken by the tax administration that is later determined to be false, or if it also covers situations where the taxable person misinterprets the law or makes errors. Recent cases such as Gemeente Dinkelland, HUMDA, and Schütte have shown limitations regarding the payment of interest to taxable persons in the field of VAT. This raises questions about the extent to which a taxable person is entitled to interest payments and from which date. This article addresses these issues. This is done by discussing and analysing both the established CJEU case law dealing with amounts levied in breach of Union law and the recent CJEU case law on interest payments in the field of VAT.