LUXEMBOURG – New obligations for payment service providers

Article 70ter of the VAT Law implements the provisions of the new Article 243a of Directive 2006/112/EC, which imposes starting 1st January 2024 new obligations on payment service providers in order to fight against VAT fraud.

Article 70ter of the VAT Law provides that any payment service provider for which Luxembourg is the home Member State or the host Member State and which provides payment services in relation to cross-border payments, must keep records of the beneficiaries and payments relating to these services. This obligation begins as soon as the payment service provider makes more than 25 cross-border payments to the same beneficiary during a calendar quarter.

Article 70ter of the VAT Law also sets out the conditions and procedures for keeping records.

Further information is available on the website of the Luxembourg VAT authorities and on the European Commission website.

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