A business, or consumer, which has borne the economic burden of tax, levied contrary to EU law, but who did not pay the unlawful tax to the tax authorities, does not, in general, have an EU law right to claim repayment of the undue amount direct from the tax authorities. In Danfoss the ECJ rejected the existence of any absolute EU law right for a non-taxpayer to claim direct against the tax authorities. While the decision in Danfoss seems likely to dampen, not give impetus to, direct claims against the State by non-taxpayers, if recovering via the taxpayer can be demonstrated to be excessively difficult, the judgment gives non-taxpayers a basis for a direct claim. The judgment does not in any way restrict the ability of a taxpayer to recover unduly levied tax.
