Decrease of Luxembourg VAT rates for year 2023

The Luxembourg VAT authorities have issued further guidelines on the application of the reduced VAT rates in its circular N° 812 issued 6 December 2022.

In general, the VAT authorities remind that to determine the applicable VAT rate of a supply, it has to be established when exactly the goods or services were supplied (i.e. here in year 2022 or 2023).

As exceptions to this rule, the VAT authorities mention some specific cases where legal fictions replace such rule, in particular for (i) certain continuous supplies over longer periods of time for which the supply is deemed to be made at the end of such period and for (ii) the special VAT regime of art 25 of the Luxembourg VAT law, where VAT is only due after the effective payment is received and for (iii) cases for which the VAT is due when an invoice is issued or has to be issued (i.e. in general until the 15^th day of the month following the month in which the supply took place.

For further detail or any specific question, please contact our VAT department:

• Frank Heykes - Partner, VAT & Indirect Tax