Interest on tax deduction, or the surprising of the case law of the Supreme Administrative Court

Abstract

The interest on tax deduction is a compensatory interest that is intended to compensate a taxable person for temporary impossibility of disposing with the excess deduction of value added tax. This article provides an overview of the landmark case law of the European Court of Justice on interest on tax deduction.

The development of national legislation is further analyzed. The aim of the article is to clarify the role of the Supreme Administrative Court in the genesis of the interest on tax deduction.

Finally, possible perspectives of future development in this area are mentioned.

Keywords

• value added tax
• taxable person
• directive
• principle of fiscal neutrality
• right to deduct
• interest on the excess VAT