VAT

Updated on Jun 3, 2016 by LPG

A Luxembourg law effective on April 26th 2013, implementing the UE directive 2010/45 / EU, states the compulsory information an invoice must contain.

Invoices must indicate:

  • Invoicing date
  • Unique sequential number identifying the invoice
  • Customer’s VAT identification number
  • Customer’s full name & address
  • Supplier’s VAT identification number
  • Supplier’s full name & address
  • Nature and quantity of goods sold or services provided
  • Date of the delivery of the goods or completion of services
  • Date of payment of the down payment if different from the invoicing date
  • Tax base for each rate
  • Unit price excluding taxes
  • Discounts and rebates granted
  • The VAT rate applied
  • The amount of VAT to be paid ( except when applying a special regime )
  • In case of VAT exemption , indication of the respective legal notice
  • When the customer is liable for VAT , the mention " Reverse charge "
  • If the customer issues the invoice instead of the supplier, the mention «Self-billing ".

Specific cases:

For firms with an annual turnover below five hundred thousand euros (€ 500,000) and for whose operating on the cash basis system, the invoice must also show:

  • The mention "accounting on a cash basis"

If the invoice is issued by a tax representative, it should also indicate:

  • The tax representative’s number
  • The tax representative’s name and address

In case of application of a special tax arrangement, the invoice must indicate the applicable scheme:

" Scheme - Travel agency"
" Scheme - Used Goods"
" Scheme - Art object"
" Scheme - Antiques and collector's items”

Note:

Invoices of amount not exceeding 100 EUR can be simplified and only state:

  • Date of issue
  • Supplier’s full name & address
  • Nature and quantity of goods sold or services rendered
  • Price including VAT
  • The VAT rate

The law also introduces the validity of the 'electronic' bill provided that it contains the information required by this law, whatever the mode of transmission and the transmitted file format.

As of 1 January 2013 and since the law intends to harmonize the legal status of an invoice throughout the European Union, an invoice received by a Luxembourg company must comply with the requirements of the law in order to benefit from the  deductibility of VAT or from the reverse charge.

Another principle to fight against VAT fraud is that any intra-Community supply of goods or services must be invoiced at the latest two weeks after delivery.

Interest on late payment

According to the law of 6 May 2004 concerning the regulation of payment terms, in order to be able to claim interest on late payment on invoices issued, professionals should specifically indicate on their invoices to private consumers that the amounts due are subject to legal interest bearing from 90 days after the reception of goods or the acceptance of works of construction or service delivered.

Important Reminder

Invoices must also necessarily show the business permit number of the invoicing company.
 

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