Luxembourg: VAT-free zone, other VAT changes

Luxembourg VAT changes

Changes to the Luxembourg value added tax (VAT) law, effective 1 August 2015, include provisions to address the practical implications of transactions within the VAT-free zone—particularly regarding the implementation of optional measures. One of these measures aims at preventing double taxation in situations when the goods leave the VAT “suspension regime” (i.e., the regularization of VAT and imports of goods subject to VAT).


Related content

The law also concerns VAT with respect to imports of collectors’ items and antiques. Law n° 6713 amends the Luxembourg VAT law and aims at promoting the “arts sector.” The measures are intended to enhance a favorable environment for art-related transactions through various measures. For instance, the law modifies and enlarges the scope of the “margin scheme” for the supply of second-hand goods, works of art, collectors’ items and antiques to organizers of public auction sales. Moreover, and following a trend observed in the European Union, the reduced VAT rate (8% as of 1 January 2015) now applies to imports and intra-Community acquisitions following an import by the taxpayer of collectors’ items and antiques.


Read a September 2015 report [PDF 93 KB] prepared by the KPMG member firm in Luxembourg: Luxembourg Tax News

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