Sole-Mizo Zrt and Dalmandi Mezőgazdasági Zrt v Nemzeti Adó- és Vámhivatal Fellebbviteli Igazgatósága

In Sole-Mizo Zrt. (Case C-13/18) and Dalmandi Mezőgazdasági Zrt. (Case C-126/18) v Nemzeti Adó- és Vámhivatal Fellebbviteli Igazgatósága the CJEU held that a simple rate of interest set at the central bank base rate did not provide adequate compensation where VAT was refunded as a result of domestic law being held to be contrary to EU law.

The Hungarian legislation included a provision to the effect that input tax was only refundable when payment for the underlying supply had been made in full. This provision was subsequently found to be contrary to EU law and was withdrawn. Following its withdrawal the applicants submitted claims for repayment of the VAT withheld together claims for compensation for the loss of use of the money from the date when the right to a refund arose to the date when the refund was made. The court’s decision...