VAT authorities in Luxembourg were not very aggressive over the recent years with imposing fines to the taxpayers. In a recent article, Paperjam mentioned a total amount of fines of 3,4M€ in 2018, primarily for late filing of the VAT returns, which is fairly low compared to the number of taxpayers in Luxembourg.
However, a Luxembourg based company received a fine recently for the delay between the supply of a service and the invoicing of that supply. Article 63§5 LVL requires the taxpayers to issue their invoices no later than the 15th of the month following the one of the supply. A service supplied in September 2019 shall thus be theoretically invoiced no later than the 15th Oct. 2019. A rule that a lot of suppliers do not (and are simply not able to) currently apply.
No doubt that if such a practice from the VAT authorities is more widely used, a lot of companies will need to speed up their invoicing process. The penalties for such an offence to the VAT law range from 250 € to 10.000 €.
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