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Lithuania: Interest on refunds of VAT overpayments

Lithuania: Interest on refunds of VAT overpayments

The Court of Justice for the European Union (CJEU) issued a judgment concluding that the Lithuanian tax authorities cannot reduce the interest payable on refunds of value added tax (VAT) when the VAT refunds were delayed by circumstances not caused by the taxable person.


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The case was referred to the CJEU by the Supreme Administrative Court of Lithuania which sought a determination whether courts or other state institutions have the discretion to reduce the interest payable when the interest amounts might not be viewed as “reasonable and fair.” The CJEU found that interest could not be reduced on VAT overpayments that were not timely refunded because of circumstances beyond the control of the taxable person.


Read a March 2018 report [PDF 117 KB] prepared by the KPMG member firm in Lithuania

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