On 17 August 2021, the Luxembourg government introduced a draft law amending among others the amended law of 19 December 2008 on inter-administrative and judicial cooperation and the reinforcement of the means of the direct tax authorities (Administration des contributions directes) (the "ACD"), the indirect tax authorities (Administration de l’enregistrement, des domaines et de la TVA) (the “AEDT”), and the customs and excise authorities (Administration des douanes et accises) (the “Draft Law”).
Although the Draft Law contains a new set of information (please see below a summary) that shall be exchanged between administrations, the information are mostly to be communicated to the AEDT. In the explanatory note attached to the Draft Law, the government justifies the new measures by the need for the AEDT to control VAT and the subscription tax collection. Indeed, for efficient management, and taking into account the growing number of VAT taxpayers, the controls of VAT returns are progressively carried out in a targeted and computerised manner. Thus, the effectiveness of the controls relies largely on the quality of the data analysed.
The main measures of the Draft Law can be summarised as follows:
- The joint social security center (Centre commun de la sécurité sociale) (the “CCSS”) will have to communicate to the AEDT and to the ACD the list of affiliated self-employed workers. In addition, the CCSS will be required to annually provide the AEDT with the number of employees and the total payroll of each enterprise;
- AEDT will also be entitled to receive from the Ministry of Transport certain data relating to vehicles subject to registration (including the holder of the registration certificate) and held by VAT taxpayers;
- Finally, upon request, the AEDT shall obtain from the financial sector regulator (Commission de Surveillance du Secteur Financier) all information, deeds and documents in its possession regarding the entities subject to its supervision, insofar as they are necessary for the verification of the correct collection of the VAT and the subscription tax.