Normally, the Member State of Refund must notify its decision to the business within 4 months of receiving the claim. If it requires further information in order to process the claim, it then has up to a maximum of 8 months (from receiving the claim) to notify its decision. The Member State of Refund must make payment of the claim within 10 days of the 4 month or 8 month deadlines. If it fails to do so (and provided the business has complied with all of the Member State of Refunds requests), then it must pay interest to the business. This must be calculated at the same rate as is paid to businesses established in the Member State of Refund.
If the Member State of Refund has not responded within 4 months (or 8 months where further information has been requested and provided) the claim is deemed to be rejected. The business then has an automatic right of appeal.