Interest on withheld VAT deduction in the context of European law: case law interventions, legislator reactions and persistent intertemporal issues
Abstract
In the last issue of the magazine Obchodněprávní revue, a groundbreaking decision of the Supreme Administrative Court in the matter of the amount of interest on interest from the withheld VAT deduction in the case of tax audit was annotated (Obchodněprávní revue, 2021, No. 3, p. 224). This decision had an immediate effect on the practice of tax authorities, which until then had granted inadequately low compensation for taxpayers' often often withheld funds only for reasons of routine verification.
The decision was also publicized in this way as a great victory for taxpayers.1 However, the whole issue is broader and has its historical development, in which there is also a period of refusal to provide any compensation at all. It also has a sequel.