- New VAT Law Amendments: The law of December 20, 2024, amends the 1979 VAT law to incorporate EU directives on special schemes for small enterprises and VAT rates.
- Special SME Scheme: It introduces a special VAT exemption scheme for small enterprises, allowing EU-based small businesses to benefit from VAT exemptions across Member States if certain turnover thresholds are met.
- VAT Exemption Conditions: To qualify, businesses must not exceed €100,000 in EU-wide turnover and meet specific domestic and cross-border sales thresholds, and they must apply for an EX identification number.
- Administrative Adjustments: The law includes changes to VAT registration and reporting requirements, such as the introduction of a new VAT-R form and adjustments to VAT exemption procedures.
- Effective Date: The amendments come into effect on January 1, 2025, aiming to streamline VAT compliance and enhance administrative cooperation within the EU.
Source Legilux.public.lu
