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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.