Newsletters & Newsflashes

The case concerned Mydibel S.A., a Belgian VAT taxable person, that owned several buildings which it used exclusively for its economic activity and for which it deducted the input VAT paid for its construction in full. In 2009, Mydibel entered into sale and lease-back (cession-bail) agreements with

In two recent cases, the ECJ clarified in which situations holding companies might be entitled to deduct final losses, thus confirming the principles previously established in the Marks & Spencer decision (C-446/03). In the first decision, Memira Holding (C-607/17) dated 19 June 2019, a Swedish

On 13 June 2019, the ECJ published its judgment in the IO vs Inspecteur van de rijksbelastiengsdienst case (C-420/18) and clarified that the member of a foundation’s supervisory board does not qualify as a VAT taxable person as he does not independently exercise an economic activity. The foundation

On 4 June 2019, the Luxembourg Higher Administrative Court ( Cour Administrative) handed down a judgment on the application of the intellectual property partial exemption regime. In the case at hand, an individual resident taxpayer holds various patents, including the one at issue in the present

On 24 May 2019, government ministers approved the filing of the draft law providing for a transposition of Directive (EU) 2018/1910 of 4 December 2018 regarding the harmonisation and simplification of certain rules in the value added tax system for the taxation of trade between Member States (the "

On 15 May 2019, the ECJ published its judgment in the Vega International case (C-235/18) confirming its previous judgment in Auto Lease Holland (C-185/01) relating to the VAT treatment of intercompany payments for the use of fuel cards. The subsidiaries of Vega International transported commercial

On 8 May 2019, the ECJ published a judgment (C-566/17 Związek Gmin Zagłębia Miedziowego w Polkowicach v Szef Krajowej Administracji Skarbowej ) clarifying the extent of the right to deduct input Value Added Tax (“ VAT”) incurred on supplies used indissociably for the purpose of economic and non

The OECD’s Multilateral Instrument Convention (“ MLI”), which was signed in Paris on June 7 th 2017, has been adopted by the Luxembourg parliament on February 14 th 2019 (draft bill No. 7333), signed on March 7 th 2019 and deposited with the OECD on April 9 th 2019, which means that Luxembourg has

On April 11 th 2019, the Luxembourg government published a draft law transposing Directive 2017/1852 on dispute resolution mechanisms in the European Union (hereafter the “ Directive”). This draft law aims to establish a more effective mechanism on resolving tax disputes between Luxembourg and other

On February 22 nd 2019, the Luxembourg tax authorities published a Circular (the “ Circular”) providing guidelines as to the new rules applicable to permanent establishments (“ PE”). Further to the domestic legislative changes in the context of the BEPS project, the Luxembourg law definition of a PE

On March 26 th 2019, the Council’s conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes (2019/C 114/02) (hereinafter the “ List”) have been published in the Official Journal of the European Union. The List, which was already composed of American Samoa, Guam, Samoa

While under Luxembourg tax law dividend distributions are subject to withholding tax, share capital reductions are out-of-scope provided that (i) no distributable reserves are available, which would be deemed to be distributed firstly and that (ii) the share capital reduction is motivated by serious