Recovery interest

The tax authorities can charge three types of interest. In the case of assessments for the tax years up to and including 2011, you still have to deal with tax interest. From the tax year 2012, with effect from 1 January 2013, the Tax and Customs Administration calculates tax interest. Finally, in addition to levy interest and tax interest, there is also recovery interest.. Hieronder lees je wanneer je met deze rente te maken krijgt.

Payment of recovery interest

Collection interest is the interest that is levied if you have not paid on time. Too late for a (provisional) assessment is six weeks after the date of the assessment. In the case of an additional assessment (for example, if you submit a VAT return too late), this is fourteen days after the date of the assessment notice. An additional assessment is recoverable four weeks after the date of the assessment notice.

Calculation of recovery interest

The period over which the interest is calculated runs from the first day after the aforementioned due date until the day of payment. If the tax bill has been partially paid, the interest is charged on the amount that has not yet been paid. In addition, in most situations, interest is also charged over a period of granted deferral of payment.

Receipt of recovery interest

If you have missed out on interest yourself because you have paid too much tax, you can receive compensation of recovery interest. From 2013, the Tax and Customs Administration will only reimburse interest if an amount to be paid has not yet been paid six weeks after the date of the assessment or decision. The recovery interest is not paid if it is due to the taxpayer himself that the assessment has not yet been paid, for example because an incorrect account number has been passed on.

In addition, you may be entitled to payment of recovery interest if you have lodged an objection or appeal against an assessment and the postponement of payment has been rejected. If it turns out that the objection or appeal nevertheless leads to a reduction in the assessment, you are entitled to interest on the amount to be refunded. That interest calculation period then starts on the day after the final payment term of the assessment and ends six weeks after the date of the reduction.

Amount of interest

Just like the levy and tax interest, the recovery interest is linked to the statutory interest. Since 1 April 2014, a minimum percentage of 4% has also applied.

2020-2024: temporary reduction in interest rate
 Due to corona, a temporary reduction has been introduced on the recovery interest. From 22 March 2020, until 30 June 2022, instead of 4%, you only pay 0.01%. With effect from 1 July 2022, this reduced percentage will be gradually reduced to 4%: As of this date, the percentage will be set at 1%, on 1 January 2023 at 2%, and then in 2 steps it will arrive at 4% on 1 January 2024.

Find out more

You can  read more about the changes in recovery interest as a result of corona here. In this article, the Tax and Customs Administration explains  more about the interest, and the possibilities of objection and leniency. In this article we wrote from Lexlupa about tax interest.
 If you do not agree with the amount of the interest or if you have a question, please feel free to contact us.

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