LOS DEFENSORES DE LA TECNOLOGÍA TRADICIONAL

When being the member state of refund, the Luxembourg authorities will request a third party service provider to prove its authorization to follow up on the status of a VAT refund claim.

Proxy

Usually, the taxable person needs to register the proxy on the website (e-TVA) by clicking the respective “boxes” and specify how long the proxy is valid (starting date – ending date).

The Luxembourg VAT Authorities may ask for an original written document with an authorization which should be sent to them via regular mail. All documentation should be in French, German or English.

Supporting documentation

In principle, taxable persons established in the EU do not have to submit any supporting documents with their claim. However, the form must contain the following information:

• The claimant's name and full address; • An email address;

• A description of the claimant's business activity for which the goods and services are acquired;

• The refund period covered by the application;

• A declaration by the claimant that it did not supply any goods or services in the member state of refund during the refund period, with the exception of exempt transportation services and ancillary services or the supply of goods and services to a person that is liable for the payment of VAT;

• The claimant's VAT identification number or tax reference number; and • Bank account details, including IBAN and BIC codes.

E-invoicing

There are no specific requirements, e-invoices are generally accepted and self- sufficient. However, the invoices have to be attached as a “pdf” file and the total size cannot exceed 5 MB.

Refunds and appeals

The Luxembourg VAT authorities will notify the claimant by electronic means about their decision to accept or to reject the claim within four months from date of receipt of the request. An e-mail notification will always be sent by the authorities.

Queries/decisions will be sent to the person whose email address is mentioned in the eTVA registration. In case the claimant indicated a proxy, the notification should be addressed and sent to the proxy holder and the claimant’s email address will be put in ‘CC’.

The authorities can request additional information (e.g. original invoices) during this four-month period. The claimant must provide the information within one month from the date it is received.

Where additional information is requested, the authorities must issue a decision on the claim within two months after the claimant submits the information; or if the claimant did not provide the additional information, within two months from the expiration of the one-month period for the claimant to respond.

In any case, if the authorities request additional information, they have at least six months from the date of receipt of the application to decide to fully or partly refund the input VAT. If the authorities request again additional information from the claimant, they have to notify the claimant about their decision to accept or to refuse the refund. If a refund is granted, it will be paid within 10 business days after the end of the relevant period to a bank in Luxembourg or another member state. In the latter case, any bank charges for the transfer will be deducted from the amount to be paid to the claimant.

If the refund is not granted, the grounds for rejection of the application will be stated. An appeal against the denied claim can be made to the Luxembourg VAT authorities within three months of receipt of the notification (tax assessment). The appeal should be introduced by letter in one of the official languages. If the appeal is unsuccessful, the claimant can initiate proceedings before the national court.

Some examples of causes of rejection which were regularly used by the Luxembourg authorities are an invalid refund period, having a permanent establishment in

Luxembourg from which the claimant performs an economic activity, etc.

The VAT authorities may impose penalties and interests in case of fraud or other misleading behaviour from the claimant.

In practice, the processing of a refund claim approximately takes four to eight months.

Non-EU businesses (13th Directive)

This refers to a non-EU established company submitting a 13th Directive claim in Luxembourg.

Eligibility for refund

A foreign taxable person is entitled to recover Luxembourg VAT if the following conditions are satisfied:

• It is not registered, liable or eligible to be VAT-registered in Luxembourg; • It does not have its place of business, a fixed establishment or its usual place of

residence in Luxembourg during the refund period;

• It has not carried out any taxable supplies of goods or supplies of services in Luxembourg during the refund period, except for:

− Certain VAT-exempt cross-border transportation services and ancillary services; − Certain supplies of goods or services for which the Luxembourg recipient is the

VAT debtor; or

− Certain electronically provided services to non VAT taxable persons established in the European Union.

Non-refundable VAT

VAT cannot be recovered when it has been charged by mistake or for certain supplies of goods that are VAT exempt. VAT cannot be recovered if the goods or services are used for private purposes.

Partially refundable VAT

There are no expenses for which non-established companies would only be allowed to a partial refund of Luxembourg VAT.

Making claims

Minimum amounts

The amount for which application is made may not be less than EUR 250.

Time limits

The application must cover a period of one calendar year.

The application must be submitted to the Luxembourg “Administration de

l’Enregistrement et des Domaines” at the latest on 30 June of the year following the end of the refund period. Late claims are not accepted and the deadline will not be extended.

Proxy

If the claimant decides to be represented by a proxy, he has to inform the Luxembourg VAT Authorities by sending them the written proxy.

Application forms

VAT refund claims for input VAT incurred in Luxembourg must be submitted to the Luxembourg “Administration de l’Enregistrement et des Domaines” on the form issued by the Luxembourg VAT authorities.

Supporting documentation

The following documents must be submitted with each application:

• Original invoices, import documents, bills, vouchers, receipts or customs clearance forms (copies are not accepted);

• An original certificate of VAT (or similar tax) status, showing that the claimant is registered for VAT (or similar tax) purposes in its country of residence (this certificate may not be more than one year old) or that it independently carries out an economic activity on a regular basis, regardless of the purpose or result of this activity;

• A written statement confirming that the claimant has not carried out any taxable supplies in Luxembourg apart from those mentioned above under “Eligibility for refund;” and

• A written statement confirming that the taxable person will reimburse any unduly received payments to the Luxembourg VAT authorities.

The application form and supporting documentation must be sent to: Administration de l’Enregistrement et des Domaines

Bureau d’imposition XI

Remboursement et Franchises 67-69, Rue Verte

2667 LUXEMBOURG Luxembourg

T: + 352 44 90 53 43 (Bureau XI) or + 352 44 90 51 (Switchboard) F: + 352 25 07 96

[email protected]

E-invoicing

There is no specific procedure to reclaim VAT under the 13th Directive on the basis of e-invoices. The original copies of the invoices have to be provided to the Luxembourg VAT Authorities together with the VAT refund claim.

Refunds and appeals

The Luxembourg VAT authorities must issue a decision on the refund claim within six month from the date of the submission of the claim.

If a refund is granted, it will paid within the six months following the submission of the VAT refund claim. The Luxembourg tax authorities are not liable for late payment interest if the refund is not processed in a timely manner.

If the refund is not granted, the grounds for rejection of the application will be stated. An appeal against the denied claim may be made to the Luxembourg tax authorities within three months following the receipt of the notification (tax assessment).

The Luxembourg VAT authorities may impose penalties and interests in case of fraud or other misleading behaviour from the claimant.