Press Release: VAT: Commission refers the UK to the Court and launches infringement proceedings against Spain concerning the refund of VAT to non established taxable persons

On 31 January, 2008, the European Commission decided to refer the UK to the European Court of Justice following its refusal to amend its legislation concerning the refund of VAT borne by taxable persons not established in the EU. It also requested Spain to change its administrative practice concerning the refund of VAT to taxable persons established in a Member State of the Community other than Spain. This request takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If the administrative practice is not amended within two months in order to comply with the reasoned opinion, the Commission may decide to refer the matter to the European Court of Justice.