Judgment of the Court (Grand Chamber) of 19 July 2012 (reference for a preliminary ruling from the High Court of Justice (Chancery Division) — (United Kingdom) — Littlewoods Retail Ltd and Others v Her Majesty’s Commissioners for Revenue and Customs

(Case C-591/10) (1)

(Second and Sixth VAT Directives - Input tax - Refund of excess - Payment of interest - Procedures)

2012/C 295/07

Language of the case: English

Referring court

High Court of Justice (Chancery Division)

Parties to the main proceedings

Applicants: Littlewoods Retail Ltd and Others

Defendant: Her Majesty’s Commissioners for Revenue and Customs

Re:

Reference for a preliminary ruling — High Court of Justice (Chancery Division) — Interpretation of Article 8 and Annex A, point 13, of the Second Council Directive 67/228/EEC of 11 April 1967 on the harmonisation of legislation of Member States concerning turnover taxes — Structure and procedures for application of the common system of value added tax (OJ, English Special Edition, Series I, Chapter 1967 p.16) — Interpretation of Article 11C(1) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1) — Repayment of overpaid input tax — Interest rate applicable

Operative part of the judgment

European Union law must be interpreted as requiring that a taxable person who has overpaid value added tax which was collected by the Member State contrary to the requirements of European Union legislation on value added tax has a right to reimbursement of the tax collected in breach of European Union law and to the payment of interest on the amount of the latter. It is for national law to determine, in compliance with the principles of effectiveness and equivalence, whether the principal sum must bear ‘simple interest’, ‘compound interest’ or another type of interest.

(1)  OJ C 89, 19.3.2011.