Most Read Contributor in Luxembourg, February 2017
December has rolled around... thankfully this means sweets and
treats and some time off, but it also means that there are a couple
of VAT items to make sure you're prepared for—because the
year-end is just around the corner too.
Tune in every week until Christmas as we keep you updated on
important tax information to know before 2017. And follow us on
Twitter at @KPMGLuxembourg for
daily tax updates! (Hashtags: #KPMGTax and
First up is VAT. Here are three things you should know:
Last call for 2015 VAT returns
The legal deadline for your annual 2015 VAT return was 1 May
2016, but the Luxembourg VAT authorities grant an administrative
tolerance of eight months, meaning that you have until 2 January
2017. If you thought you'd missed your chance, then you
Change is in the air
This year marks the last time that you had the choice between
eTVA and eCDF for your VAT returns—as of 1 January 2017, you
must use the eCDF platform (even if you're filing your 2015
returns). You must also use this platform to file your EC Sales
Lists from this date onwards. This electronic platform has been set
up by the Centre des technologies de l'information de
l'Etat (CTIE). You will be able to still use your eTVA
Luxtrust certificate to access the eCDF platform.
If you're unsure about transitioning from eTVA to eCDF then
give us a shout.
New obligations for directors in Luxembourg
Attention independent and Luxembourg-established directors: as
of 1 January 2017, you'll be considered taxable persons for VAT
purposes. You will therefore have to register for VAT purposes,
file VAT returns (how often will depend on your turnover), and
issue proper invoices, applying a 17% VAT rate on the services
you render to the entities you manage.
A few stipulations to remember: if you fulfill certain
conditions given in Luxembourg's VAT law then you might benefit
from the franchise regime; if you do not act independently (i.e. if
you act on behalf of your employer), you will not be considered a
taxable person for VAT purposes. Especially in the investment fund
management industry, these rules can complicate the answers to
questions like whether you are subject to VAT tax, and if so then
to what extent.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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As the banking industry continues to be shaped by technological and regulatory forces, we’ve gathered our European Central Bank (ECB) experts to hold a conference about this changing landscape. KPMG’s ECB desk from Frankfurt will join our Luxembourg banking partners to unpack the latest news from the ECB, including regulations that will affect the future of banking.
We would be very pleased if you could attend this event, which will be held at our Luxembourg headquarters in Kirchberg on 30 March. The talk will begin at 5:00pm and last until 6:00pm, at which point the evening will be turned over to a networking session with drinks.
Please let us know if you are able to attend by using the registration button above (by 27 March, if possible).
We look forward to seeing you there!
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
The Common Reporting Standard (CRS) has been initiated by the Organization for Economic Cooperation and Development (OECD) aiming at improving international tax compliance and preventing tax evasion, through the automatic exchange of information between the countries that implement CRS.
The DITC has stated that it will issue updated CRS Guidance Notes in the first quarter of 2017 to cover the Regulations.
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