Refund of VAT to taxable persons not established in the country of refund – the European Commission has decided to bring an action against Luxembourg before the Court of Justice
The European Commission has decided to take the Grand Duchy of Luxembourg to the Court of Justice for its lengthy delays in refunding VAT to taxable persons not established in its territory. Refunds are currently paid with considerable delays, some date back to 2000 and are still outstanding. This is a breach of the six-month deadline laid down in the Eighth Directive on the common VAT system (79/1072/EEC) and it causes major cash-flow difficulties for traders.