Invoicing and Tax regulation in Luxembourg
Invoicing Regulation in Luxembourg
In Luxembourg, mandatory invoicing is imposed on goods and services provided to natural and legal persons. Full tax invoices should include details such as date of issue, invoice number, supplier and customer’s VAT number, full description of goods or services, and VAT rate applied. Special invoicing regulations include self-billing and electronic invoicing approved by the tax authority.
Real-Time Reporting / Fiscalization in Luxembourg
Luxembourg does not currently have a real-time reporting requirement or mandate for fiscalization. Rather, businesses are subject to periodical VAT reporting obligations. Thus, it's important to ensure that any submitted reports accurately reflect the state of transactions during that period.
E-Invoicing in Luxembourg
E-invoicing is increasingly being used in Luxembourg, especially for B2G transactions. It is not, however, mandatory for B2B or B2C transactions but is highly encouraged. e-Invoices must meet the conditions laid down by the VAT law; they must be stored for ten years and must be readily available for the tax administration.
VAT/GST/Tax Compliance in Luxembourg
Luxembourg has a standard VAT rate of 17%, with reduced rates of 14%, 8%, and 3%. VAT compliance in Luxembourg is mandatory for businesses. Some foreign traders may be liable to register for Luxembourg VAT. Businesses must provide a VAT return monthly, quarterly, or annually to the Indirect Tax Authority. It generally depends on the annual turnover of the company. In addition, an annual VAT return summarizing all the transactions carried out must be provided by March 1 of the following year. Your business also might need to file an EC Sales List or Intrastat declaration under certain conditions.