5 Major Developments in Luxembourg

5 Major Developments in Luxembourg

• Details Registration and Declaration Requirements for DAC7

• Automatic and mandatory exchange of information declared by Platform Operators – law of 16 May 2023

• Luxembourg Tax Administration Clarifies VAT Treatment of Company Cars

• Increase of the threshold of obligation to file Intrastat returns

• Implementation of EU Directive for Automatic Exchange of Information

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CESOP

• Council of ministers endorses CESOP

DAC7

• Details Registration and Declaration Requirements for DAC7

• Automatic and mandatory exchange of information declared by Platform Operators – law of 16 May 2023

• Luxembourg enacts tax transparency rules for digital platforms, makes other changes regarding administrative cooperation in tax matters

• Parliament Passes Bill to Implement DAC7, affecting CRS

• Implementation of EU Directive for Automatic Exchange of Information

• Update – Luxembourg Enacts Law Transposing DAC7

• DAC7: Automatic Exchange Of Information For Digital Platforms Soon To Apply In Luxembourg

• Luxembourg Chamber of Deputies Approves Law for DAC7

• DAC7 approved by the Chamber of Deputies

Deduction (Input Tax Credit)

• Luxembourg Tax Administration Clarifies VAT Treatment of Company Cars

• Luxembourg VAT authorities released additional guidance about VAT and company cars

• Luxembourg VAT Administration Issues Circular on Taxation of Company Cars

• Luxembourg Tax Administration Clarifies VAT Treatment of Company Cars

E-Commerce / Electronic Services

• Parliament Considers Bill No. 8207 to Transpose EU Directive on Payment Service Providers

ECJ (European Court of Justice)

• Flashback on ECJ cases C-269/03 (Vermietungsgesellschaft Objekt Kirchberg) – Immovable property rental exemption – Right to opt for taxation – Deduction of input tax – Prior approval by tax authorities

Exemption

• Flashback on ECJ cases C-269/03 (Vermietungsgesellschaft Objekt Kirchberg) – Immovable property rental exemption – Right to opt for taxation – Deduction of input tax – Prior approval by tax authorities

Fraud / Tax Evasion

• Parliament Considers Bill No. 8207 to Transpose EU Directive on Payment Service Providers
• Parliament Considers Bill No. 8207 to Transpose EU Directive on Payment Service Providers

• Chamber of Deputies Considering New Reporting Obligations for Payment Service Providers to Combat VAT Fraud

Intrastat

• Increase of the threshold of obligation to file Intrastat returns

Place of Supply

• Circular 807bis – Provision of cars to employees – Rental for consideration – Place of taxation

Private Use

• Luxembourg Tax Administration Clarifies VAT Treatment of Company Cars
• Luxembourg VAT authorities released additional guidance about VAT and company cars
• Luxembourg VAT Administration Issues Circular on Taxation of Company Cars
• Luxembourg Tax Administration Clarifies VAT Treatment of Company Cars

Rate

• Changes in standard VAT rates in Estonia, Luxembourg, Singapore and Switzerland per Jan 1, 2024

Reporting / Compliance

• EY VAT News – 5 June 2023

• Parliament Considers Bill No. 8207 to Transpose EU Directive on Payment Service Providers
• Chamber of Deputies Considering New Reporting Obligations for Payment Service Providers to Combat VAT Fraud

Supply of Services

• Circular 807bis – Provision of cars to employees – Rental for consideration – Place of taxation

Taxable Transaction

• VAT and company cars – Circular Letter 807 bis dated 28 April 2023 seeking to provide additional guidance to taxpayers

• New circular addresses VAT consequences of employers providing company cars to staff

• Luxembourg VAT authorities clarify VAT treatment of company cars

• Circular 807bis – Provision of cars to employees – Rental for consideration – Place of taxation

Tax Authorities / Penalties

• To be or not to be…duly motivated. That is the question for claims against VAT assessments

• AED Annual Activity Report 2022