Temporary reduction of VAT rates
As part of the measures to combat inflation, the Law of 26
October 2022 provides for a temporary reduction in Luxembourg VAT
rates that will be effective from 1 January 2023 to 31 December
2023.
Accordingly, the standard, intermediate and reduced rates will
decrease by 1% to reach 16%, 13% and 7% respectively. The super
reduced rate of 3% will remain unchanged.
The VAT authorities (Administration de
l'Enregistrement et des Domaines) published a circular on 7 December
2022 providing guidelines on the application of these temporary VAT
rates.
VAT on directors' fees : a turning point?
On 26 April 2022, the lower administrative court of Luxembourg
(Tribunal administratif) has requested a preliminary
ruling from the Court of Justice of the European Union
("CJEU") on the VAT treatment applicable
to the director's fees (tantièmes) received
by a (natural person) member of the board of directors of a
Luxembourg public limited
