Luxembourg VAT liabilities

Mon 22nd Aug 2016

Luxembourg is planning to tighten responsibilities and liabilities on VAT fraud in a number of areas in a new law.  Potential changes include:

  • Fines for non compliance will extend to up to €10,000 (currently €5,000)
  • Criminal liability, which brings a potential prison term of up to 5 years, will be extended to VAT fraud
  • Penalties on VAT liabilities will be extended to up to 50% of any evaded VAT
  • Shared VAT liabilities for and persons preparing or supervising the preparation of VAT returns.  This could be applied if Luxembourg VAT rules are not followed.