- SME Scheme Overview: In Luxembourg, small and medium-sized enterprises (SMEs) can opt for an SME scheme that exempts them from certain VAT obligations, provided their annual turnover does not exceed the national threshold of €50,000. However, specific transactions, such as the supply of building land and exempt cross-border transport supplies, are excluded from this scheme.
- Simplified VAT Obligations: SMEs applying for the domestic SME scheme are relieved from submitting periodic VAT returns, while those under the cross-border SME scheme can replace multiple VAT registrations and returns in different member states with a single prior notification and a quarterly report submitted in their home state.
- Quarantine and Appeals: SMEs excluded from or voluntarily leaving the SME scheme face a quarantine period during which they cannot reapply for the exemption for the current and following calendar year. Appeals related to the SME scheme must be directed to the respective Member State of establishment for various issues regarding turnover and reporting.
Source ec.europa.eu
