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Monday, 13 August 2018

Luxembourg VAT Grouping – Luxembourg government publishes its final law

For prior coverage after the introduction of the bill of law dated 16 April 2018 (the “Bill”), we refer to our newsletter of 3 May 2018.

As indicated in our previous newsletter, the Bill foresaw in the change to enter into force by the end of July 2018.

The Luxembourg law on VAT grouping (the “Law”) was published last Friday (10 August 2018).

According to article 8 of the Law, the Law entered into force on 31 July 2018 and now allows Luxembourg entities that share financial, economic and organisational links to set up a VAT group in Luxembourg. Such group allows them to benefit from administrative simplification (as the group as a whole – as opposed to each member individually – submits VAT returns) and potentially prevent unnecessary VAT costs.

We encourage international business with Luxembourg based entities to actively review their VAT overall position and determine whether the possibility to apply for the VAT grouping mechanism may benefit them (financially and/or administratively).

To further discuss your Luxembourg VAT position, please do not hesitate to contact any of the authors of this publication.

Stijn Vastmans - Partner (
Michiel Boeren - Counsel (
Maxime Grosjean - Senior Associate (