- Luxembourg government has submitted a draft bill to combat VAT fraud in certain sectors
- Domestic supplies of goods sensitive to VAT fraud will be subject to the reverse charge rule
- Clients will receive an invoice without VAT and with the quote “reverse charge”
- Businesses in these sectors and those acquiring more than €10,000 in goods need to comply with the new obligations
- Suppliers should check the identity, VAT status, and solvability of their clients
- Businesses must adapt their ERP system, accounting, invoicing, and payment processes
- The law is expected to enter into force on January 1, 2024.
Source: www2.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
