- The EU has been increasing controls on VAT taxation, with measures such as the “VAT in digital age” initiative for real-time reporting of VAT.
- The Court of Justice of the European Union helps to clarify and harmonize VAT rules.
- Luxembourg has detailed VAT returns and businesses must ensure correct VAT treatment for each transaction.
- VAT audits may be initiated through discrepancies in sales listings or through exchange of correspondences or on-site audits.
- Companies should be transparent and proactive in dealing with VAT Authorities during audits.
Source Loyens Loeff
