On 23 December 2019, the Luxembourg VAT authorities issued Circular n°799, outlining the main legislative changes in Luxembourg VAT law effective as from 1 January 2020.
On 10 July 2019, the CJ delivered its judgment in the case Kuršu zeme (C-273/18). The Latvian company SIA Kuršu zeme deducted input VAT charged to it by another Latvian company, KF Prema, with regard to a local supply of goods.
The rent free period commonly granted in office lease contracts has been the source of much heated debate with the Luxembourg VAT authorities.
On 19 January 2019, the Luxembourg VAT authorities published Circular 790(“Circular”) to clarify Article 28 paragraph 3 of the Law of 12 February 1979 (“VAT Law”) on transfer pricing.
On 18 January 2019, the Luxembourg VAT authorities published a new Circular (N°790), which clarifies the provisions of article 28, §3, of the VAT Law on transfer pricing and VAT.
Further to the elections for Parliament held in October this year, the former ruling coalition between the liberal, ecological and socialist parties emerged victorious and the Prime Minister was appointed by the Grand Duke to form a new government.
Luxembourg’s well-established reputation as a leading financial centre makes it a natural candidate for financial companies weighing their Brexit relocation options.
On 8 November 2018, the Court of Justice of the European Union (“CJEU”) released its decision in the C&D Foods Acquisition ApS case (C-502/17) concerning the deduction of input VAT on consultancy costs incurred by a holding company in connection with a sale of a sub-subsidiary’s shares.
VAT on costs incurred in connection with an envisaged share disposal is in principle not recoverable. However, if the reason for the disposal lies in the VAT taxed activities of the parent company, VAT on the disposal costs may be recoverable.
