Intra-community VAT refund procedures can often feel like navigating unfamiliar territory without a roadmap. It's complicated, risky, and almost always leaves you spending unnecessary time and resources getting back on course. Fortunately, you don't...
Intra-community VAT refund procedures can often feel like navigating unfamiliar territory without a roadmap. It's complicated, risky, and almost always leaves you spending unnecessary time and resources getting back on course. Fortunately, you don't need to travel solo - especially regarding the newest clarification regarding intra-community supplies of new means of transport.
Luxembourg has recently clarified the VAT refund procedure regarding non-VAT registered persons and new means of transport, clearing the way to successful VAT recovery. Here's what you need to know to ensure you stay on the simpler route.
However, before we go further, it's important to clarify that this refund opportunity only applies to persons (natural or legal persons) not VAT-registered under the regular taxation scheme in Luxembourg. Furthermore, this only applies to the portion of the VAT paid in Luxembourg after selling a new means of transport in another Member State of the European Union.
Let's unpack (with the help of recent clarifications from the Luxembourg Tax Administration).
The eligibility criteria include any person or entity not registered for VAT under the normal taxation scheme. In other words, you do not submit VAT returns regularly and don't often supply intra-community new means of transport. This also only applies to persons (natural or legal) who sell and transfer new means of transportation to a buyer established in another Member State of the European Union.
The next part of the puzzle clarifies what constitutes a "new means of transport." According to the Guichet.lu, Luxembourg's official administrative information portal, prerequisites regarding 'new means of transport' eligible for partial VAT refund include the following:
Type |
Exception |
Prerequisites |
Vessels |
|
|
Aircraft |
Does not include aircrafts used by airlines that are primarily engaged in international commercial traffic. |
A total take-off weight of more than 1,550 kilograms.
|
Motorised land vehicles |
No current exceptions |
|
As with anything VAT refund-related, you can expect a deadline. For this specific intra-community supply, eligible persons have 15 days from the completion of the taxable transaction to submit a declaration to the Registration Duties, Estates and VAT Authority (Administration de l'enregistrement, des domaines et de la TVA).
After that, VAT refund requests can be made within five years (from 31 December of the calendar year to which the tax refund relates). If you have yet to request a refund within this time frame, your request will no longer be eligible or considered.
Bypass complicated VAT procedures and confirm the facts with accurate, up-to-date information with VAT IT. Our experts help simplify the complexities of domestic and foreign VAT recovery so your journey towards successful VAT reclaim is a smooth one.
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