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.



architecture-building-flash-tax-deductions

Tax Deductions Of Securitisation Special Purpose Entities At Risk

The Commission requests that Luxembourg amends the way it has implemented the interest deduction limitation rule into its domestic tax law. read more
CJEU-tax-flash-gavel-flag

CJEU rules Luxembourg fiscal unity regime infringes EU law

In its judgment of 14 May 2020, the CJEU found that the Luxembourg fiscal unity regime is contrary to the freedom of establishment. read more
People - VAT Flash Coronavirus - 1 April 2020

Coronavirus raises VAT questions in Luxembourg

FAQ about the impact of the coronavirus from a Luxembourg VAT point of view read more