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The ECJ has prohibited the provisions of Slovakian tax law that disallowed any interest on Slovakian VAT refunds to be repaid by the authorities after 10 days following the end of an audit.
Although EU law requires interest to be paid on late refunds repaid by the tax authorities, in practice, not all Member States add interest to their late repayments. For example, Spain is one of the countries that usually pay interest on VAT refunds, whereas Italy does not normally pay such interest.
Rules on VAT refunds through VAT returns are also different from one country to another. In this article, we explain some of differences that apply in European countries.