Registration for VAT
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Value added tax (VAT) is a consumption tax. It is a tax on turnover which:
- burdens final consumption;
- is levied at each stage of the transaction on the turnover of each involved party.
It covers every operation relating to an economic activity and is calculated according to the added value given to the product.
In principle, VAT is neutral and is not treated as part of the cost price of goods or services:
- taxable persons must first calculate the output tax by adding the due tax rate to the turnover realised;
- the result obtained is then reduced by the tax invoiced to the taxable person by their suppliers (input tax).
In order to register for VAT, a business (= taxable person) must file an initial declaration with the Registration Duties, Estates and VAT Authority (Administration de l’enregistrement, des domaines et de la TVA - AED).
Who is concerned
In principle, each person who carries out an activity which confers upon them the status of a taxable person must register for VAT.
A taxable person liable for VAT is each natural or legal person who carries out, on an independent and regular basis, any operation falling within any economic activity, whatever the purpose or result of the activity and from whatever location it is performed.
Compulsory registration
The following must register for VAT in Luxembourg:
- any person established in Luxembourg who commences a taxable activity;
- in general, any person who is not established or domiciled in Luxembourg, but who carries out transactions (supplies of goods or services), the place of taxation of which is deemed to be in Luxembourg (with the exception of companies declaring their revenue through the one-stop-shop system - Guichet Unique);
- any non-taxable legal person making intra-Community acquisitions (ICA) of goods for an annual amount in excess of EUR 10,000 excl. tax;
- any taxable person established in Luxembourg who only carries out transactions which are not eligible for a deduction and who purchases and receives services from a taxable person established abroad, services for which the buyer is liable for tax;
- any taxable person established in Luxembourg who:
- only carries out transactions which are not eligible for a deduction;
- provides taxable services in another EU Member State for which the buyer is liable for tax;
- any person established in Luxembourg who:
- is subject to the agricultural and forestry flat-rate taxation scheme;
- supplies wine, sparkling wine, wood or capital goods for an annual amount in excess of EUR 35,000.
VAT exemption
Taxable persons whose annual turnover excl. tax during a calendar year has not exceeded EUR 35,000 benefit from a VAT exemption.
However, they are required to inform the administration of their annual turnover realised during the preceding calendar year. Thus, they are not required to file a VAT return.
However, these persons are subject to the same rules as the "normal" taxable persons and hence have to file a VAT return by electronic means, if:
- they become liable for tax with respect to the purchase of goods and/or services carried out abroad; or
- they provide services in another Member State of the EU (PSI).
Optional registration
The following may register for VAT:
- any person who:
- waives the exemption for the supply and rental of immovable property;
- opts for the application of VAT on these transactions.
- any taxable person who:
- carries out a fully exempted activity which does not give rise to the deduction of input tax; or
- benefits from the tax exemption for small enterprises or from a flat-rate taxation scheme;
- any non-taxable legal person established in Luxembourg who carries out intra-Community acquisitions of goods for an annual amount excl. tax of less than EUR 10,000 and who opts for taxation in Luxembourg of said acquisitions;
- any taxable person established in another EU Member State and registered for VAT who:
- supplies goods - including dispatch or transport (distance selling) - or services to persons not registered for VAT and established or domiciled in Luxembourg, for an annual amount of less than EUR 10,000;
- wishes to apply Luxembourg VAT on these sales;
- any person established in Luxembourg, subject to the agricultural and forestry flat-rate taxation scheme and who wishes to be subject to the standard taxation scheme.
Prerequisites
Preliminary steps
In principle, before registering for VAT, businesses must have opened a bank account or a postal checking account (CCP) at a Luxembourg or foreign bank.
Deadlines
The registration for VAT must take place:
- within 15 days of the start of the activity for taxable persons that are not exempt from registration;
- for taxable persons exempt from registration and for legal persons not liable for VAT, before the following operations are carried out:
- provision of services in another EU Member State for which only the buyer is liable for VAT;
- intra-Community acquisitions of goods subject to VAT in Luxembourg;
- purchase of services from providers established outside Luxembourg and where the buyer is liable for VAT.
How to proceed
Initial declaration
In order to register for VAT, the taxable person must submit an initial declaration or a declaration of option corresponding to their situation to the competent tax office, namely:
- if registration is compulsory:
- either an initial declaration for natural persons;
- or an initial declaration for legal persons;
- or an initial declaration (ICA) for natural persons (a taxable person in principle, but who is exempted from registration for VAT and who carries out intra-Community acquisitions (ICA) of goods for an annual amount in excess of EUR 10,000 excl. tax);
- or an initial declaration (ICA) for legal persons (non taxable legal person who carries out intra-Community acquisitions of goods for an annual amount in excess of EUR 10,000 excl. tax);
- if registration is optional:
- either a declaration of option (ICA) for natural persons;
- or a declaration of option (ICA) for legal persons.
These declarations can be made:
- either online using MyGuichet.lu;
- or by mail using the corresponding forms (see under Online services and forms hereafter).
Attention: taxable persons who carry out an economic activity in Luxembourg and whose registered office is outside of Luxembourg but within the European Union are registered with the tax office Luxembourg 10 (bureau d'imposition).
Documents and information to be added to the application
For legal persons (companies), the declaration must be accompanied by:
- a copy of the constitutional documents in French or German;
- a copy of the identity card (or passport) of the partners listed in the constitutional documents and/or the business managers/directors of the company.
For natural persons, the declaration must be accompanied by:
- a copy of the identity card/passport of the taxable person.
The information to be provided in the initial declaration includes:
- for a company:
- name of the company;
- legal form;
- address of the registered office;
- date of the constitutional documents and, for Luxembourg companies, if available, the number of the official journal (Mémorial C) or of the electronic compendium of companies and associations (Recueil électronique des sociétés et associations - RESA) in which they were published, otherwise indicate "Publication à venir" (publication will follow);
- names and addresses of named partners listed in the constitutional documents and/or business managers/directors of the company;
- for a natural person:
- surnames and first names of the taxable person;
- civil status;
- type and place of activity;
- complete private contact details;
- a bank account or a postal checking account (CCP) number at a Luxembourg or foreign bank (IBAN + BIC);
- date of the start of the activity, which determines the first period for which a VAT declaration will have to be submitted;
- financial year;
- forecast or otherwise of intra-Community acquisitions and deliveries of goods or services;
- estimation of the anticipated annual turnover excl. tax.
This estimate will be one of the elements used to determine the periodicity for filing declarations:
| Turnover ≤ EUR 112,000 | 112,000.01 < Turnover ≤ EUR 620,000 | Turnover > EUR 620,000 |
|---|---|---|
| Annual VAT declaration | Quarterly AND annual VAT declaration | Monthly AND annual VAT declaration |
The competent tax office will rule on the application for registration. In addition to the information provided on the initial declaration, the administration may require other information or documents relating to the business activity of the person applying for registration or for a VAT number. In principle, the monthly scheme is legally provided for by default and the administration alone is competent to determine the frequency of declarations that should apply.
Receiving the VAT number
Once registered for VAT, the taxable person (or non-taxable legal person) receives a VAT identification number composed of a unique number with 8 digits preceded by the letters 'LU'.
The VAT identification number is used for intra-Community trade.
For all communications with the administration, the taxable person must use their 13-digit national identification number (matricule) assigned by:
- the social security administration upon their first registration in Luxembourg (for natural persons);
- the Government IT Centre (Centre des Technologies de l'Information de l'État - CTIE) following the publication of the constitutional documents in the RESA (for legal persons).
Online services and forms
Who to contact
Luxembourg Guichet Unique
-
Registration Duties, Estates and VAT Authority (AED) Luxembourg Guichet Unique
- Address:
- 308, route d’Esch L-1471 Luxembourg Luxembourg
- Phone:
- (+352) 247 80 800
- Email address:
- info.aed@en.etat.lu
Closed ⋅ Opens Monday at 8.30
- Sunday:
- Closed
- Monday:
- 8.30 to 12.00 , 14.00 to 16.00
- Tuesday:
- 8.30 to 12.00 , 14.00 to 16.00
- Wednesday:
- 8.30 to 12.00 , 14.00 to 16.00
- Thursday:
- 8.30 to 12.00 , 14.00 to 16.00
- Friday:
- 8.30 to 12.00 , 14.00 to 16.00
- Saturday:
- to
Luxembourg Guichet Unique
-
Registration Duties, Estates and VAT Authority (AED) Luxembourg Guichet Unique
- Address:
- 308, route d’Esch L-1471 Luxembourg Luxembourg
- Phone:
- (+352) 247 80 800
- Email address:
- info.aed@en.etat.lu
Closed ⋅ Opens Monday at 8.30
- Sunday:
- Closed
- Monday:
- 8.30 to 12.00 , 14.00 to 16.00
- Tuesday:
- 8.30 to 12.00 , 14.00 to 16.00
- Wednesday:
- 8.30 to 12.00 , 14.00 to 16.00
- Thursday:
- 8.30 to 12.00 , 14.00 to 16.00
- Friday:
- 8.30 to 12.00 , 14.00 to 16.00
- Saturday:
- to
Related procedures and links
Procedures
Links
Further information
on the Luxembourg Trade and Investment Office - New York website
