Place of supply of services: Luxembourg VAT
The place of supply of services in Luxembourg does not follow from the supplier's country: exceptions come first, the general rule second. A service placed abroad falls outside the scope of Luxembourg VAT.
Insights & analysis
Insights: understanding Luxembourg fiduciary, tax and structures
Clear, factual analysis on accounting, tax, company formation, holdings and funds in Luxembourg, by a licensed accounting firm (auth. 10077274). Three clearly separated content types: dated analysis, maintained reference guides, and service pages.
Dated analysis
Fixed asset disposal in Luxembourg: the gain
A fixed asset disposal in Luxembourg does not generate income equal to the sale price: the asset leaves at its net book value and only the difference is a result. The rest turns on article 54 and on VAT.
Allocation of profit in Luxembourg: who decides
Allocating profit in Luxembourg is not a free vote: carried-forward losses, the legal reserve and statutory reserves come before any dividend. The real discretion applies only to what is left.
VAT credit note in Luxembourg: correcting an invoice
A VAT credit note in Luxembourg only works if it refers to the original invoice specifically and unambiguously. The period to adjust, a return already filed and VAT invoiced in error all follow from that single rule.
Income tax provision in Luxembourg: the right entry
Income tax provision in Luxembourg: the charge belongs to the year that generated it, not to the year of the assessment. The PCN 2020 accounts, the advances and the assessment gap all follow that rule.
Bank loan accounting in Luxembourg: the entries
Bank loan accounting in Luxembourg turns on one distinction: the monthly instalment is not an expense. The questions are which accounts of the standard chart take principal and interest, how to split the debt by maturity at each closing, and what the annex must say about security.
Payroll accounting in Luxembourg: the entries
Payroll accounting in Luxembourg: gross is not the cost, net is not the expense. The question is which accounts of the standard chart receive what, which rates apply in 2026, and why the CCSS statement never lands on the payroll month.
Management report in Luxembourg: content and exemption
Management report in Luxembourg: since size criteria were raised, most companies are exempt. The question is who is still bound, what the law actually requires, and what in fact belongs in the notes.
Formation expenses in Luxembourg: asset or expense?
Formation expenses in Luxembourg: capitalising them is an option, not a duty. The choice drives the first year's result, the balance sheet total and, above all, the right to distribute.
Assets under construction in Luxembourg: depreciation
Assets under construction in Luxembourg: a building site, a machine being installed or an advance paid are not depreciated. The clock starts at commissioning, and that switch is what gets missed.
Prepaid expenses in Luxembourg: the pro rata rule
Prepaid expenses in Luxembourg: an invoice paid in December for the following year is not a charge of the closed year. It leaves the result, sits in assets and comes back in N+1.
Accruals and accrued income in Luxembourg: cut-off
Accruals and accrued income in Luxembourg: an invoice that has not arrived yet does not stop the charge being booked. It is not a provision, and it does not sit in the same balance sheet item.
Analysis archive
Tax
- VAT input deduction in Luxembourg: the pro rata
- Non-deductible expenses in Luxembourg: the list
- VAT group in Luxembourg: conditions and effects
- Global minimum tax in Luxembourg: 15% and EUR 750m
- Tax classes in Luxembourg: 2026 scale and the class U
- 3% housing VAT in Luxembourg: eligibility, cap and refund
- Fiscal unity in Luxembourg: conditions and effects
- Investment tax credit Luxembourg: 12% or 18% rates
- Tax loss carry-forward in Luxembourg: 17 financial years
- ViDA in Luxembourg: the VAT timetable to 2030
- Luxembourg start-up tax credit: where the bill stands
- VAT one-stop shop in Luxembourg: OSS for e-commerce
- Luxembourg VAT return frequency: the three regimes
- Luxembourg VAT exemption threshold: the €50,000 rule
- Luxembourg income tax return: who files, when and how
- Quarterly tax advances in Luxembourg: the calendar
- Form 500 corporate tax return in Luxembourg
- Dividend withholding tax in Luxembourg: 15% and relief
- Net wealth tax reduction in Luxembourg: 5-year reserve
- Municipal business tax in Luxembourg: rates and calculation
- Luxembourg corporate income tax rate: 14%, 16%, 23.87%
- Minimum net wealth tax Luxembourg: EUR 535 to 4,815
- VAT reverse charge Luxembourg: cases and setup
- Check an EU VAT number: what VIES really proves
- Luxembourg VAT 2026: what actually changes
Accounting
- Investment grant in Luxembourg: how to account for it
- Consolidated accounts thresholds in Luxembourg: relief
- Foreign exchange differences in Luxembourg: LuxGAAP
- Doubtful receivables in Luxembourg: value adjustments
- Inventory valuation in Luxembourg: the LuxGAAP rules
- Provisions for liabilities and charges in Luxembourg
- Legal reserve in Luxembourg: 5 % up to a 10 % cap
- Capital reduction with repayment in Luxembourg
- Capital increase by contribution in kind in Luxembourg
- Shareholder current account in Luxembourg: the rules
- Depreciation useful lives in Luxembourg: tax rules
- Finance lease accounting in Luxembourg
- Approved statutory auditor or commissaire
- Annual accounts in a foreign currency in Luxembourg
- Which accountant for an SME in Luxembourg? Criteria 2026
- Late filing of annual accounts in Luxembourg
- Company size thresholds in Luxembourg
- Intra-group loan interest accruals in Luxembourg
- Impairment of participations in Luxembourg
- Accounting for dividends received in Luxembourg
- Standard chart of accounts Luxembourg: PCN structure
- FAIA Luxembourg: the audit file the AED can request
Payroll & HR
- Self-employed social contributions in Luxembourg
- Participative bonus in Luxembourg: 50% exempt
- Fixed-term contract in Luxembourg: 24 months maximum
- Sick leave and continued pay in Luxembourg: 77 days
- Notice period in Luxembourg: 2, 4 or 6 months
- Annual leave and public holidays in Luxembourg 2026
- Meal vouchers in Luxembourg and benefits in kind
- Company car benefit in kind in Luxembourg: rates
- Retirement in Luxembourg: conditions and calculation
- Designated worker Luxembourg: duty and training
- Luxembourg social parameters: 2026 rates and limits
- Luxembourg minimum wage 2026: EUR 2,771.33 gross per month
- Luxembourg tax allowance for delaying retirement: AMVP
- Student job pay in Luxembourg: contract and 80 % of SSM
- Cross-border remote work: the two 2026 thresholds
Compliance
- Tax residence certificate in Luxembourg: how to apply
- DAC7 reporting in Luxembourg: who files, when and what
- Tax statute of limitations in Luxembourg: 5 and 10 years
- Politically exposed person in Luxembourg: PEP rules
- KYC documents for company formation in Luxembourg
- Source of funds and source of wealth in Luxembourg
- Register of beneficial owners in Luxembourg: RBE filing
Structuring
- SPF subscription tax in Luxembourg: rate and caps
- Financing company substance in Luxembourg
- Luxembourg interest limitation rule: article 168bis
- Participation exemption opt-out in Luxembourg
- Participation exemption recapture rule in Luxembourg
- ATAD and substance: five costly mistakes
Governance
- Annual general meeting in Luxembourg: six months
- Loss of half the share capital in Luxembourg
- Interim dividend in Luxembourg: the four conditions
- Luxembourg withholding tax on directors' fees
Company setup
- Domiciliation vs dedicated office in Luxembourg
- How to set up a company in Luxembourg: 8 steps and costs
- Conversion of legal form in Luxembourg: SARL to SA
- Paying up SARL share capital in Luxembourg: 2026 rules
Invoicing
- Peppol directory in Luxembourg: how to register
- B2B e-invoicing Luxembourg: what the bill provides
- Mandatory invoice details in Luxembourg: full list
- E-invoicing Luxembourg: public sector obligations
Restructuring
- Transfer of registered office to Luxembourg: procedure
- Demerger and partial asset contribution in Luxembourg
- Merger by absorption in Luxembourg: steps and timing
Liquidation
- Liquidation surplus in Luxembourg: who pays the tax
- Luxembourg administrative dissolution without liquidation
Grants
Tools & systems
Reference guides
Annual accounts and RCS filing: what Luxembourg law requires
Companies subject to annual accounts filing submit them to the RCS within seven months of year-end, after eCDF validation where applicable. Scope, deadlines and exceptions explained.
eCDF: filing structured-format accounts in Luxembourg
Entities subject to the standard chart of accounts (PCN) validate their accounts on eCDF before filing them separately with the RCS; VAT returns also use eCDF. Scope, steps and exceptions explained.
SARL or SARL-S: which form to start with in Luxembourg?
The SARL-S lets you start with €1 of capital, without a notarial deed, reserved for individuals. The classic SARL offers more flexibility. A side-by-side comparison.
SOPARFI vs SPF: comparing the two holding vehicles
The SOPARFI is a commercial company usable internationally with participation exemption; the SPF is reserved for passive private-wealth management. The key differences.
ATAD substance: five checkpoints for a Luxembourg structure
Without real economic substance (directors, decisions, local accounts), a Luxembourg holding risks losing tax benefits. ATAD requirements in practice.
RAIF, SIF or SICAR: which fund vehicle in Luxembourg?
The RAIF is not approved directly by the CSSF but through an AIFM; the SIF and SICAR are supervised. A regulatory, tax and operational comparison.
Related services
Voluntary liquidation of a company: the steps in Luxembourg
Dissolution, appointment of the liquidator, liquidation auditor's report, then closure: the sequence of a voluntary liquidation and its timeline.
How much does an accountant cost in Luxembourg? Pricing benchmarks
Self-employed, company, SME or group: accounting fee ranges in Luxembourg by turnover and transaction volume, with a simulator.
Switching accountant in Luxembourg: how to transfer your file
Recovering trial balances, ledgers, eCDF access and filing continuity: how to switch firm without disruption, even mid-year.
Our expertise hubs
Company setup & lifecycle
Set up, establish and run your Luxembourg company, without bouncing between providers.
Accounting, accounts & closing
LuxGAAP bookkeeping, reconciliations, closing work, annual accounts, eCDF validation and RCS filing. For SARL, SARL-S, SA, holdings, SOPARFI, SMEs and groups.
Tax, VAT & payroll
Tax returns, VAT, payroll and tax incentives, on time, at the right rate.
Holdings, SOPARFI & wealth
Structuring participation holding and private wealth: SOPARFI, SPF, holding, family office.
Financial direction (CFO)
An outsourced CFO: reporting, management control, treasury, forecasting.
Investment funds
Structuring a fund and keeping its books: RAIF, SIF, SICAR, SCSp, valuation inputs, AIFM support.
Governance & directorship
Directors, substance and corporate secretarial for solid Luxembourg governance.
Regulatory compliance
AML/KYC, DAC6, CRS/FATCA, ESG/CSRD, MiCA: staying compliant in a demanding framework.
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