LUXEMBOURG: COVID-19 VAT IMPLICATIONS

LUXEMBOURG – Update 25th May

Administrative on filing VAT returns revoked

In view of the gradual deconfinement of the national economy, the administrative tolerance in matters of VAT declaration and subscription tax is revoked. The declarations which were not introduced because of the health crisis, are to be delivered as soon as possible. However, forced collection of tax debts remains disabled for the time being.
 
Source Credit – aed public
 LUXEMBOURG – Update 25th May

Luxembourg Revokes Administrative Tolerance for VAT Declarations

The Luxembourg authority for VAT has issued a release announcing that the administrative tolerance regarding VAT declarations in relation to COVID-19 has been revoked in view of the gradual deconfinement of the national economy. As such, the release notes that declarations that have not been submitted due to the COVID-19 crisis are to be submitted promptly. However, the forced collection of tax debts remains disabled for the time being.
 
Source Credit – Orbitax
 

LUXEMBOURG – Update 30th April

 The Luxembourg tax authorities has suspended penalties on all delayed filings.

Source Credit – Richard Asquith (Avalara)

LUXEMBOURG – Update 21st April

 Intrastat measures in response to COVID-19

For the purpose of collecting statistical data, businesses must declare intra-Community exchanges in the Intrastat system on a monthly basis; Operators are exempted if the annual amount of their intra-Community exchanges does not exceed EUR 200,000 for arrivals and EUR 150,000 for dispatches.

In Luxembourg, businesses must declare their intra-Community exchanges on a monthly basis to the “Institut national de la statistique et des études économiques” (STATEC) at the latest on the 16th working day of the month following the month of reference if the report is submitted electronically.

In the Covid-19 context, the STATEC have announced tolerance measures relating to Intrastat declarations for the following months:

• Intrastat return for February 2020 >>> deadline is postponed to April 24, 2020
• Intrastat return for February 2020 >>> deadline is postponed to April 24, 2020• Intrastat return for March 2020 >>> deadline is postponed to May 15, 2020
• Intrastat return for April 2020 >>> deadline is postponed to June 8, 2020
• Intrastat return for May 2020 >>> deadline is postponed to June 30, 2020

Source Credit – Michaela Merz

LUXEMBOURG – Update 17th April

Removal of late penalty fees until further notice. The Government encourages businesses to contact the tax authorities if they have any difficulties in paying taxes. Tax offices still open by appointment.

Source Credit – Accordance VAT

LUXEMBOURG – Update 17th April

Bill for Formal Extension of Tax Return Deadlines and Statute of Limitations for COVID-19

Luxembourg Parliament Considering Bill for Formal Extension of Tax Return Deadlines and Statute of Limitations for COVID-19

The Luxembourg parliament is currently considering Bill No. 7555, which would extend certain deadlines in the context of the COVID-19 crisis. One of the key measures of the Bill is the formal extension of the deadlines for both corporate and individual income tax returns for 2019 to 30 June 2020, which was announced already by the Ministry of Finance in March.

The Bill also provides for the possibility of a further extension for filing return to 31 December 2020.

Another key measure is a one-year extension of the limitation period for direct tax claims by the tax authority (i.e., statute of limitations). This provides an extension to 31 December 2021 for claims

that would expire 31 December 2020. As such, the tax authority would have an additional year for the assessment and collection of claims corresponding to the 2015 tax year or, in the case of non-filing or inaccurate filing, claims corresponding to the 2010 tax year.

The bill is currently before the Finance and Budget Committee.

Source Credit – Orbitax

LUXEMBOURG – Update 31st March

• Deadline for the filing of 2019 income tax returns is postponed up to 30 June 2020. With respect to the subscription tax, the authorities indicate that no fines will be imposed if the returned is not filed on time because of COVID-19 (i.e. deadline was normally fixed on 20 April 2020 for Q1 2020).
• Cancellation (or reduction) of the quarterly income tax (and corporate income tax) advances and municipal business tax for Q1 and Q2 2020 can be requested directly to the tax authorities.
• Taxpayers may request a 4-month deferral starting as from the due date of payment of income tax (and corporate income tax), municipal business tax and net wealth tax which were due as from 1 March 2020.
• While all social security contributions remain due, employers can benefit from some flexibility when it comes to managing their payments, without having to fear administrative sanctions. Suspensions will also enter into force as from 1st April 2020 (i.e. suspension of calculation of default interest for late payments, initiation of proceedings for forced collection of contributions, enforcement of constraints, fines for late declarations).
• No administrative fines for late filing of VAT returns until further notice; (those fines were system-generated as soon as the deadline elapsed and ranged between EUR 250 and 10,000).
• Refunding all VAT balances under EUR 10,000.

Source Link here

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