The Luxembourgish Parliament (Chambre des Deputes) has accepted Bill No. 8207 for consideration. The primary objective of this bill is to incorporate the EU Council Directive on requirements for payment service providers into the national legislation.
One of the proposed measures in the bill is the alignment of Luxembourg’s VAT fraud laws with EU regulations, effective from January 1, 2024. This alignment ensures compliance with the EU standards and promotes consistency in combating VAT fraud.
To effectively combat VAT fraud in international e-commerce, the bill introduces administrative tools. These tools are designed to address the specific challenges associated with VAT fraud in cross-border online transactions.
The bill imposes a requirement on payment service providers in Luxembourg, including domestic and foreign banks and credit institutions, to maintain electronic records of cross-border payments and beneficiaries on a quarterly basis. This measure enhances transparency and facilitates the detection and prevention of fraudulent activities.
The bill also includes provisions related to recordkeeping thresholds. Providers executing more than 25 cross-border payments to the same payee within a quarter will be subject to specific recordkeeping requirements. Additionally, rules will be introduced to determine the locations of payers and payment recipients, ensuring accurate reporting and compliance.