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  • VAT penalties and new registration threshold in Luxembourg

    Luxembourg has increased VAT penalties on late returns and tax payments. The current fine of €5,000 for non-compliance will be increased to €10,000, with up to 50% of the VAT due assessed as potential penalties. Also, businesses preparing and submitting VAT returns on behalf of other companies (eg. accountants or tax advisors) may be jointly liable for the VAT obligations of their clients. Finally, as it happens in many other countries, Luxembourg foresees prison sentences of up to five years for...
    • By Marosa EU VAT
    • Published 30/10/2016 18:29
  • Directors are subject to VAT in Luxembourg

    New guidelines for all directors in Luxembourg Luxembourgish Directors acting independently and providing services to another company must charge VAT in Luxembourg on these supplies. The tax authorities have published guidelines on the VAT treatment of these supplies where they clarified that Directors who are not employed by the company to whom they are providing services must register for VAT and charge VAT on these supplies. What if the supply is provided from a director outside Luxembourg? Should the supply...