VAT charged incorrectly and interest on arrears: Understanding the Council of State's decision of 15 January 2025

19/2/2025

We are thrilled to announce the publication of our latest article entitled “Default interest: VAT charged incorrectly is not paid wrongly” published by Doctrine.‍‍

Written by Grégoire Person and Thomas Le Boucher, associate lawyers and co-founders of Cyplom Avocats, this article provides a quick overview of recent doctrinal comments submitted for public consultation.

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On January 15, 2025, the Council of State clarified the calculation of interest on arrears in the event of VAT charged incorrectly: they run from the disputed claim, and not from the date of payment of the tax.

🔹 Key deadline: if the administration reimburses within 6 months, no default interest is due.
🔹 Challenge for businesses: properly structure their reimbursement requests to maximize their rights.
🔹 Alignment with the CJEU: excessive refund periods may undermine the principle of VAT neutrality.

Article link: https://www.doctrine.fr/commentaries/0vB7j8fwz6yAN

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