Last update 01.12.2022
Persons who are not registered for VAT purposes under the normal taxation scheme may apply for a refund of a portion of the VAT paid in Luxembourg after selling a new means of transport in another Member State of the European Union.
Any person (natural or legal) not registered for VAT purposes under the normal taxation scheme, who occasionally makes an intra-Community supply of a new means of transport.
The VAT refund can be claimed following an intra-Community supply of a new means of transport.
The new means of transport concerned are listed below:
The sale of a new means of transport to a buyer established in another Member State, as well as the transfer of this means of transport outside of the country within the European Union, entails 2 obligations:
Any taxable person, not registered for VAT purposes, who supplies a new means of transport must, within 15 days of the completion of this taxable transaction, submit a declaration to the Registration Duties, Estates and VAT Authority (Administration de l'enregistrement, des domaines et de la TVA).
The request for tax refund must be made within 5 years (as from 31 December of the calendar year to which the tax refund relates). After this period, the refund will no longer be possible.
Example: for a car sold on 5 March 2022, the refund claim can be made until 31 December 2027.
Applying for a VAT refund is an administrative procedure that is free of charge.
The seller of the means of transport can submit a refund application:
The beneficiary of the refund must attach the following documents to their application:
In principle, refund requests are processed within one month of receipt of the complete application.
The amount to be refunded is calculated on the basis of the sales price made by the beneficiary, but it cannot exceed the amount of VAT initially paid.
The applicant of the refund is obliged to submit an application that corresponds to the economic reality.
Decisions to refuse a refund may be subject to a complaint to be submitted to the Director of the Registration Duties, Estates and VAT Authority.
The complaint, duly substantiated, must be submitted in writing to the competent department within 3 months of the date of notification of the decision refusing the refund.
The complaint is reviewed by the Director. The Director's decision, which replaces the decision that was the reason of the complaint, is notified to the applicant.
The Director's decision may be appealed. The appeal is lodged by summons before the district court of Luxembourg, which sits in 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.
Where a claim has been lodged and a decision has not been taken within 6 months of the claim, the claimant may:
The appeal is lodged by summons before the district court of Luxembourg, which sits in civil matters. In this case, the three-month time limit does not apply.
The submission of claims based on false declarations, or documents that do not correspond to the economic reality may be subject to a tax penalty between EUR 250 and EUR 10,000.
In addition to the criminal penalties provided for, any person who submits a false declaration or an incomplete application with the aim or result of obtaining a tax refund in an unlawful manner is liable to a fine of 10 to 50 % of the refund unduly obtained.
Demande de remboursement de TVA d'un moyen de transport neuf dans le cadre d'une livraison intracommunautaire