LUXEMBURG

LUXEMBURG (TVA)

Luxembourg  being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 17%

Reduced VAT Rate: 3%, 8% and 14%

Registration Threshold Distance Selling: 100,000 €

EU VAT number format: LU99999999

Registration Threshold

Resident - There is no registration threshold                   
Non resident - There is no registration threshold                                  
IC Acquisitions - €10,000

VAT Registration

Within 15 days of commencement of economic activities in Luxembourg, a taxable person is obliged to request for a VAT registration by filing a registration form with the Administration. In addition to the information mentioned on this document, a French or a German version of the by-laws should be attached to the request.

VAT Compliance

Detailed rules regulate reporting requirements of Luxemburg transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes. 

VAT Returns

The filing frequency depends on the yearly turnover (in Luxembourg):

• for a yearly turnover not exceeding EUR 112,000 annual returns must be filed;
• for a yearly turnover between EUR 112,000 and EUR 620,000 quarterly returns must be filed as well as an annual return; and
• for a yearly turnover exceeding EUR 620,000 monthly returns must be filed as well as an annual return.

If the expected turnover declared does not exceed EUR 112,000, for new VAT registration, quarterly returns must be filed as well as an annual return.

Monthly and quarterly returns must be filed by the 15th day of the month following the declaration period (usually extended 2 months).

Where only one annual return has to be filed, the time limit is 1 March of the following calendar year. In the other two cases (monthly or quarterly reporting), the annual VAT return must normally be filed before 1 May of the following calendar year. The VAT authorities usually extend this time limit to respectively the 31st October and 31st December of the following calendar year.

Intrastat and EC Sales Lists

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of Luxemburg from other Member States or leave it to other Member States.

Declaration must be filed monthly once the annual threshold is exceeded.

Intrastat declarations can be submitted in paper format. The due date for submission is the sixth woking day following the end of the reference period. E.g. for the January 2006 period, declarations must be submitted by February 8, 2006.

Enterprises sending in their declarations on disk or by electronic means benefit from a further 10 working days and must supply the declaration no later than the 16th working day following the reference month.