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09 May 2018 / article

How does the European Commission perceive the VAT grouping reform in Luxembourg?

The partial disappearance of the independant group of persons (IGP) caused by the EU Court of Justice's decisions created uncertainties on the Luxembourg financial and issurance sectors. The local VAT grouping reform is already seen as a mecanism aiming at reintroducing IGPs.


The announcement of the future adoption of the VAT unit scheme in Luxembourg and the filing of the project to that effect, have already been the subject of many comments. The European Union has recently been involved in the exercise through its Value Added Tax Committee, whose questions and considerations may lead to further precisions.

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