Luxembourg – Extension of the reverse charge mechanism

The Law dated 22 December 2023 has been published into the Memorial A838 on 22 December 2023. Starting 1st January 2024, it amends the article 61.3 of the VAT law and extends the scope of the reverse charge mechanism to the supply of the following goods, where the value of the transaction exceeds EUR 10,000 excluding tax:

• mobile phones, i.e. devices designed or adapted for use in connection with a licensed network operating at specific frequencies, whether or not they have any other use;
• integrated circuits such as microprocessors and central processing units, prior to their incorporation into end-user products;
• games consoles, tablet computers, laptops and headphones;
• raw or semi-finished metals as defined in Annex F, including precious metals excluding those covered by the profit margin scheme or the special scheme for investment gold.

Where the value of the goods invoiced does not exceed EUR 10,000 excluding tax without taking into account any subsequent reduction in remuneration, VAT is payable by the taxable person supplying the goods. Above this threshold, VAT is payable by the taxable customer.

This law, based on the non-mandatory provisions of Article 199 bis of Directive 2006/112/EC, is a new measure to combat VAT fraud.

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