Analysis: “Judgment in the XY case regarding the payment of interest in case of refund of taxes” by Darya Budova
On 9 September 2021 the Court of Justice delivered its ruling in XY v Hauptzollamt B (Réduction fiscale facultative) (C-100/20). In this case the Court had to deal with the question of whether ‘delay interest’ should be paid in case of a refund of taxes that were due on the basis of a national provision implemented based on an optional provision of a Directive.
XY is a German undertaking in the manufacturing sector which in the course of its activities draws electricity from the supply network in order to charge batteries. For the purposes of electricity tax, XY declared its own consumption and applied a reduced tax rate. This rate was established in the German law and adopted on the basis of the powers granted to the Member State