Declaring the sale of a new means of transport (for non-VAT registered persons)

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Declaration of sale of a new means of transport by a person not registered for VAT

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Persons who are not registered for VAT under the normal taxation scheme in Luxembourg must declare the sale of a new means of transport. If the new means of transport is sold in another European Union Member State, the seller may apply for a refund of a portion of the VAT they paid in Luxembourg when they purchased the means of transport in question.

Who is concerned

Any natural or legal person who is not registered for VAT under the normal taxation scheme in Luxembourg – i.e. they do not normally file VAT returns – and who occasionally sells a new means of transport.

Prerequisites

The new means of transport whose sale must be declared include:

  • any waterborne vessel – with the exception of those used for transporting paying passengers on the high seas, or for commercial, industrial or fishing activities, and lifeboats – that is longer than 7.5 metres, provided that:
    • the vessel is delivered within 3 months or less of its date of first use; or
    • the vessel has sailed for less than 100 hours;
  • any aircraft – with the exception of those used by airlines that primarily engage in international commercial traffic – with a total takeoff weight of more than 1,550 kilograms, provided that:
    • the aircraft is delivered within 3 months or less of its date of first use; or
    • the aircraft has flown for less than 40 hours;
  • any motorised land vehicle with a cylinder capacity of more than 48 cubic centimetres, or a power output of more than 7.2 kilowatts, that is intended for the transport of persons or goods, provided that:
    • the vehicle is delivered within 6 months or less of its date of first use; or
    • the vehicle has been driven for no more than 6,000 kilometres.

Example: a person who does not usually carry out transactions that are subject to VAT purchases a new car in Luxembourg. The person then sells the car to a person residing in Germany, and delivers the car within 6 months of its date of first use, or before it has been driven 6,000 kilometres. Following this transaction, the seller of the car can apply to the Registration Duties, Estates and VAT Authority (Administration de l’enregistrement, des domaines et de la TVA) for a refund of a portion of the VAT that they paid in Luxembourg when they purchased the car.

Preliminary steps

The sale of a new means of transport, and the delivery of the means of transport to the buyer, entails 2 obligations:

  • the issuance of a sales invoice in accordance with VAT law, showing:
    • the details of the seller and the buyer;
    • details about the means of transport sold (date of first use, number of hours sailed/flown, number of kilometres travelled for land vehicles);
  • the deregistration or cancellation, by the National Society of Automotive Traffic (Société nationale de circulation automobile - SNCA), of the means of transport sold.

Deadlines

The declaration of the sale of a new means of transport must be filed with the Registration Duties, Estates and VAT Authority within 15 days of the sale.

The tax refund application must be filed within 5 years (as of 31 December of the calendar year to which the tax refund relates). After this deadline, the refund will no longer be possible.

Example: for a car sold on 5 March 2022, the seller can apply for the tax refund until 31 December 2027.

Costs

Declaring the sale of a new means of transport is free.

How to proceed

Filing the declaration

As the seller of a new means of transport, you can file your declaration:

  • online on the MyGuichet.lu platform, with or without authentication using a LuxTrust product or an electronic identity card (eID) (see 'Online services and forms'); or
  • by post, on paper.

You must have a private eSpace (Pdf, 3.49 Mb) on the MyGuichet.lu platform.

The procedure with authentication using a LuxTrust product or an eID has many features that are not available for the procedure without authentication.

For instance, with the procedure with authentication, applicants can save their form as a draft, interrupt the application process, and resume the process at a later stage.

In addition, if you have a MyGuichet.lu private eSpace, you can:

  • fill in your form automatically with the data that is recorded in your private eSpace;
  • track your application online and view electronic messages from the administration in your personal dashboard;
  • view all of your previous applications.

How do I get a LuxTrust product? (French, Pdf, 370 Kb)

You can use this procedure if you do not have a LuxTrust product or an eID card.

Supporting documents

The following documents must be submitted with your declaration:

  • a copy of the purchase invoice;
  • in case of purchase abroad, proof that VAT was paid to the Customs and Excise Agency (Administration des douanes et accises);
  • a copy of the sales invoice;
  • a copy of the seller's identity card;
  • if the right to a tax refund exists, a bank account identification document in the beneficiary's name.

If the beneficiary of the refund is a third party, a written and signed authorisation from the seller is required.

Application processing time

In principle, declarations are processed within one month of receipt of the complete application.

Amount of tax due/to be refunded

The amount to be refunded is calculated based on the price at which the new means of transport was sold by the beneficiary, but it cannot exceed the amount of VAT that they paid when they purchased the means of transport.

Obligations

All declarations must reflect a genuine economic reality.

Disputes

Claims

If an application for a tax refund is refused, the applicant may file a claim with the director of the Registration Duties, Estates and VAT Authority.

The claim must be substantiated and filed in writing with the competent department within 3 months of the date of notification of the decision to refuse the refund.

The claim will be reviewed by the director. The applicant will be notified of the director's decision, which will override the decision that gave rise to the claim.

If, further to filing a claim, the applicant has not been notified of the director of the Registration Duties, Estates and VAT Authority's decision within 6 months of filing the claim, the applicant should assume that their claim has been rejected.

Judicial appeal

The director's decision – i.e. their explicit refusal – or lack thereof, which is tantamount to a refusal, may be appealed. The appeal must be lodged by summons before the district court of Luxembourg, which hears civil matters.

The right to appeal will lapse if the summons is not served on the administration, to its director, within 3 months of the date of notification appearing on the director's decision. This time limit only applies in the event of an appeal against an explicit refusal.

Sanctions

False declarations, or documents that do not reflect a genuine economic reality, are punishable by a fine of EUR 250 to EUR 10,000.

In addition to the criminal penalties provided for, any person who submits a false declaration or an incomplete application with the intention of unlawfully obtaining a tax refund, or resulting in an unlawfully obtained tax refund, is liable to a fine of 10 to 50% of the refund that was unlawfully claimed or obtained.

Online services and forms

Online services

Declaration of sale of a new means of transport by a person not registered for VAT

Other language(s)

Who to contact

Related procedures and links

Procedures

Links

Further information

Selling a vehicle

on SNCA website

Legal references

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