Bills of Law 8080 and 8083, both deposited with the Luxembourg Parliament on 12 October 2022, provide for decreases in VAT rates in Luxembourg.
The Law dated 26th October 2022, has been published into the Memorial A534 on 26th October 2022. It notably provides for a temporary reduction in Luxembourg VAT rates as part of measures to combat the economic effects of inflation, that will be effective from 1 January 2023 to 31 December 2023.
The reductions concern the following rates :
The super reduced rate of 3% will remain unchanged.
The Luxembourg VAT authorities published on 6th December 2022 the Circular n°812. This latter specifies the modalities of application of the new VAT rates considering the principles of chargeability of VAT in Luxembourg.
The Law dated 23 December 2022 has been published into the Memorial A649 on 23 December 2022. It provides for a permanent reduction in VAT rates on certain categories of goods and services :
The Grand-Ducal regulation dated 23 December 2022 that has been published in the Memorial A656 on 23 December 2022 determines the conditions of application of the super-reduced rate to the supply and installation of the solar panels.
The Luxembourg VAT Authorities published on 28th December 2022 the Circular n°816. This latter specifies the modalities of application of the reduced rate as well as the super-reduced rate to the categories of goods and services listed above.
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