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Pursuant to Article 137, paragraph 5a of the amended law of 4 December 1967 on income tax (the “ LITL”), and by way of derogation from the normal taxation system, remuneration paid by temporary employment contractors under an assignment contract to temporary employees whose agreed gross hourly wage

Key takeaways On 14 February 2025, the Court of Justice of the European Union (“ ECJ”) handed down a reasoned order in case C-270/24, Granulines Invest Kft, regarding the right to deduct input value added tax (“ VAT”) for invoice incorrectness pertaining to the supply of goods. Facts of the case The

On 4 October 2024, the European Court of Justice (the “ ECJ”) (Case C-585/22) ruled that Article 49 of the Treaty on the Functioning of the European Union (the “ TFEU”), which guarantees the freedom of establishment, does not preclude national legislation from fully denying the deduction of interest

On 11 December 2024, the Luxembourg Indirect Tax Authorities ( Administration de l’enregistrement, des domaines et de la TVA) issued a new circular No. 781-2 on the VAT treatment of director’s fees following the decision of the European Court of Justice (the “ ECJ”) in case C-288/22, TP v

On 16 October 2024, the Lower Administrative Court ( Tribunal administratif ) annulled a decision by the Director of the Luxembourg Tax Authorities (“ LTA”) ( Administration des contributions directes) to uphold and increase the amount of a fine imposed by the Tax Office on a tax consultancy company

Introduction On 5 November 2024, the Council adopted several measures aimed at conforming the value added tax (“ VAT”) rules to the digital age. The ViDA package will bring major changes to the VAT system. The ViDA package is based on three main pillars: Pillar 1: digital VAT reporting This first