Flash news

The law of 25 March 2020, implementing the disclosure of cross-border arrangements (“DAC 6”), has been published in Mémorial A and entered into force from 1 July 2020. However, it is requested that all cross-border arrangements occurred between 25 June 2018 and 30 June 2020 must be reported by intermediaries or taxpayers by 31 August 2020. The law can be found on the following link.

On 18 January 2019, the Luxembourg VAT Authorities published a new circular (n°790), which provides further clarification for the determination of VAT taxable basis for intra-group transactions. The circular covers the following points:

• Transactions for which the addresses do not have a right to full deduction of the tax and whose invoiced or agreed remuneration is lower than the normal value.
• Transactions carried out in the context of an activity that is only partially deductible and whose tax base is used to establish the amount of the tax deductible.
• Transactions exempted under Article 44 and not entitled to a deduction of the tax, the invoiced or agreed remuneration of which is lower than the normal value (arm’s length price).
• Transactions giving rise to the right to deduct tax, the invoiced or agreed remuneration of which is greater than the normal value (arm’s length price).