You are here:
13 August 2018 / news

Luxembourg publishes Law on VAT Grouping

The Law modifies the general VAT law and now enables Luxembourg entities sharing financial, economic and organisational links to set up a VAT group.

European Commission presents its 'Clean energy for all Europeans' package

As foreseen in our previous newsflash, the Law on VAT Grouping has officially been published, last Friday.

The text – which provides for an entry into force on 31 July 2018 – modifies the general VAT Law. It now enables Luxembourg entities sharing financial, economic and organisational links to set up a VAT group, thus allowing them to benefit from administrative simplification, and to potentially avoid VAT leakages. Although the mechanisms and conditions are different, the VAT grouping mechanism could be used by specific groups as an alternative to the independent group of persons (also known as cost-sharing agreements).

It is therefore now possible to introduce VAT grouping declarations.

Groups having established several Luxembourg entities should actively review their VAT position and the possibility to apply the VAT grouping mechanism, potentially allowing them to save non-deductible input VAT.

Do not hesitate to contact Loyens & Loeff’s Luxembourg VAT team to further discuss your company’s position.

Abstract building with green windows - Luxembourg flash Budget 2020 and ATAD 2 voted

ATAD 2 and Budget laws voted in Luxembourg

On 19 December 2019, the Luxembourg Parliament voted both the 2020 Budget law and the second EU anti-tax avoidance directive (ATAD 2) read more
Deal Standish Management - American Mountains Grand Canyon

Standish Management to acquire Halsey Group

Loyens & Loeff Luxembourg advised Standish Management in the acquisition of Luxembourg-based Halsey Group. The agreement was signed in October 2019. read more

Year-end tax bulletin 2019

The new edition of the tax bulletin gives an overview of the most significant tax developments in our home markets Belgium, Luxembourg, the Netherlands and Switzerland,... read more