Luxembourg – tax measures in response to COVID-19


For the purpose of collecting statistical data, businesses must declare intra-Community exchanges in the Intrastat system on a monthly basis; Operators are exempted if the annual amount of their intra-Community exchanges does not exceed EUR 200,000 for arrivals and EUR 150,000 for dispatches.

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Luxembourg – VAT of 17% due on activity performed by directors as from 1 of January 2017


flag-of-luxembourgThe Circular 781 was published by the Tax Authorities week ago. The Circular confirms that directors’ services will be taxable in Luxembourg in case when:

The director is established in Luxembourg and supplies services to companies established in Luxembourg and / or to non-VAT taxable companies established outside Luxembourg;

The director is established abroad and supplies services to VAT taxable companies established in Luxembourg, regardless of the VAT obligations of the director in his country of establishment, in which case VAT has to be self assessed in Luxembourg by the recipients of the services under the reverse charge mechanism.
http://www.aed.public.lu/actualites/2016/09/Circ-781/Administrateurs-FAQ/index.html

A number of questions remains open.

Please contact Marie-Isabelle Richardin at +352 49 48 48 3009
or by mail marie-isabelle.richardin@lu.pwc.com, for further details.

Luxembourg EU Presidency tax priorities


People walking in a pedestrianised area - PwC, PwC_PC_ Global_ 303.jpgPiere Gramegna, Finance Minister of Luxembourg and ECOFIN Council President, outlined his priorities for the coming six months. For the tax people especially two of them are of particular interest step up the fight against fraud and work towards fairer corporate taxation.  Mr Gramegna said “given the budgetary constraints in Member states, fair taxation and the fight against fraud are absolute priorities”.  Read More »

Finland – Supreme Administrative Court decision on the VAT treatment of non-printed books after ECJ decision (K Oy – C-219/13)


PwC_Teetasse_EN2015 seems to start with book related VAT news in the EU. After the ECJ’s judgment in the K Oy case (C-219/13), the Finnish Supreme Administrative Court (“SAC”) delivered its ruling at the end of December. Read More »

Italy: reduced VAT rate of 4% on e-books from 1 January 2015


PwC_R_Vinesh.Naidoo_Yoginee.Sharma_Vernie.Slabert_SouthAfrica_Jhb_P_CW_0017.JPGThe Italian Parliament passed the 2015 Finance Law on 22 December, which applies the 4% VAT rate to e-books as of 1 January 2015. According to the legislation any publication that is identified by an ISBN code (International Standard Book Number) and transmitted through any physical or electronic means, should be considered as a book and, as a result, subject to the 4% reduced VAT rate.Read More »

Luxembourg – increase of the VAT rates from 1 January 2015


On 15 September 2015, the Luxembourg Minister of Finance delivered his budget speech in which he announced that the Luxembourg VAT rates will be increased as follows:

  • the standard rate from 15% to 17%;
  • the intermediary rate from 12% to 14%; and
  • the reduced rate from 6% to 8%

For further information please click here or contact our VAT expert in Luxembourg:

Laurent Grençon, Partner
Phone +352 49 4848 2060
Email: laurent.grencon@lu.pwc.com

Luxembourg – increase of VAT rate as from 2015


The Prime Minister announced in his speech on 10 of April 2013 that Luxembourg intends to increase the current standard VAT rate of 15% as from 2015. Which means no increase of VAT this and next calendar year. It was also indicated that the standard VAT rate would remain the lowest in Europe. This would mean that the rate might increase from 15% to 18% at most, as Cyprus and Malta currently have the second lowest VAT rate within the EU of 18%.

Luxembourg – electronic VAT filing obligatory as from 2013


The Tax Authority announced that as from 2013 VAT returns and EC Sales Lists for supply of goods and services will have to be filed electronically.

Of interest is also the fact that the applications for recovery of local VAT paid by non resident companies might be filed electronically as well.