VAT Returns & Recovery in Luxembourg
Typically, Luxembourg VAT returns are required to be filed on a monthly basis. However, some smaller taxpayers may file quarterly or annual returns. Under the Luxembourg VAT Law, taxable persons with an annual turnover that does not exceed 112,000 euros (excluding VAT) may file a single annual return for the calendar year. This return must be filed by March 1st of the year following the calendar year to which it pertains.
Read more about VAT recovery and VAT returns in Luxembourg in our comprehensive guide below.
VAT Returns in Luxembourg
Taxable persons whose annual turnover falls between 112,000 euros (excluding VAT) and 620,000 euros (excluding VAT) must file periodic returns on a quarterly basis. Additionally, taxpayers must file an annual recapitulative VAT return that summarizes the information included in the quarterly returns.
Filling deadlines
In Luxembourg, VAT returns are generally required to be filed on a monthly basis. However, smaller taxpayers have the option to submit their returns quarterly or annually.
The VAT law in Luxembourg allows taxable entities with an annual turnover of less than EUR 112,000 (excluding VAT) to submit an annual return for the calendar year. This annual return is due by March 1 of the following year.
For taxable individuals with annual sales ranging between EUR 112,000 (excluding VAT) and EUR 620,000 (excluding VAT), they are required to file quarterly returns. In addition, these taxpayers must also submit an annual recapitulative VAT return that consolidates the data from the quarterly reports. The deadline for these periodic returns is the 15th day of the month following the end of the return period. The recapitulative annual VAT return must be submitted by May 1 of the subsequent year.
Taxable individuals with annual sales exceeding EUR 620,000 (excluding VAT) are required to submit monthly VAT returns along with an annual recapitulative return. The submission deadlines are the same as those for taxable individuals who are required to file quarterly.
In addition to the periodic returns, annual returns are also required. However, the administration may allow taxable entities with annual sales below a certain threshold to submit only a single annual return for the calendar year. Typically, the total of the yearly returns should match the sum of the periodic returns. However, adjustments or regularizations may need to be made in the annual returns, such as when calculating the final deductible prorated amount.
Interests and Penalties
Under the VAT Law in Luxembourg, a taxpayer who commits civil or criminal violations may face financial penalties or imprisonment as a form of punishment. The Luxembourg VAT Law includes a statutory interest rate for late payment of taxes due. This interest rate applies from the date when the VAT authority issues an order of payment.
Failure to comply with obligations specified by the law, including but not limited to late submission of periodic or annual VAT returns, and late VAT registration, may result in a penalty ranging from 250 euros to 10,000 euros and a penalty up to 10% a year may also be levied for late payment of VAT.
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VAT Recovery in Luxembourg
Taxable persons whose annual turnover falls between 112,000 euros (excluding VAT) and 620,000 euros (excluding VAT) must file periodic returns on a quarterly basis. Additionally, taxpayers must file an annual recapitulative VAT return that summarizes the information included in the quarterly returns.
Filling deadlines
In Luxembourg, VAT returns are generally required to be filed on a monthly basis. However, smaller taxpayers have the option to submit their returns quarterly or annually.
The VAT law in Luxembourg allows taxable entities with an annual turnover of less than EUR 112,000 (excluding VAT) to submit an annual return for the calendar year. This annual return is due by March 1 of the following year.
For taxable individuals with annual sales ranging between EUR 112,000 (excluding VAT) and EUR 620,000 (excluding VAT), they are required to file quarterly returns. In addition, these taxpayers must also submit an annual recapitulative VAT return that consolidates the data from the quarterly reports. The deadline for these periodic returns is the 15th day of the month following the end of the return period. The recapitulative annual VAT return must be submitted by May 1 of the subsequent year.
Taxable individuals with annual sales exceeding EUR 620,000 (excluding VAT) are required to submit monthly VAT returns along with an annual recapitulative return. The submission deadlines are the same as those for taxable individuals who are required to file quarterly.
In addition to the periodic returns, annual returns are also required. However, the administration may allow taxable entities with annual sales below a certain threshold to submit only a single annual return for the calendar year. Typically, the total of the yearly returns should match the sum of the periodic returns. However, adjustments or regularizations may need to be made in the annual returns, such as when calculating the final deductible prorated amount.
Interests and Penalties
Under the VAT Law in Luxembourg, a taxpayer who commits civil or criminal violations may face financial penalties or imprisonment as a form of punishment. The Luxembourg VAT Law includes a statutory interest rate for late payment of taxes due. This interest rate applies from the date when the VAT authority issues an order of payment.
Failure to comply with obligations specified by the law, including but not limited to late submission of periodic or annual VAT returns, and late VAT registration, may result in a penalty ranging from 250 euros to 10,000 euros and a penalty up to 10% a year may also be levied for late payment of VAT.
