Luxembourgian VAT returns

Once registered for value added tax (VAT) in Luxembourg, businesses must declare all taxable transactions and remit any VAT due to the Administration de l’enregistrement, des domaines et de la TVA (AED).

Luxembourgian VAT returns are filed on a monthly, quarterly, or annual basis, depending on the taxpayer’s annual turnover.

• Monthly filing generally applies to businesses whose annual taxable turnover exceeds EUR 620,000.
• Quarterly filing generally applies to businesses with annual taxable turnover between EUR 112,000 and EUR 620,000.
• Annual filing may apply to businesses whose annual taxable turnover does not exceed EUR 112,000.

The AED assigns the filing frequency at the time of VAT registration and may revise it based on turnover or changes in business activity.

VAT returns must generally be submitted by:

• The 15th day of the month following the reporting period for monthly and quarterly returns
• 1 May of the following year for annual VAT returns

Payments of any VAT due must also be made by the same deadlines.

Luxembourg uses standardised VAT return forms submitted electronically through the AED’s online platform (eTVA).

VAT-registered businesses in Luxembourg must maintain comprehensive VAT records, including:

• Sales and purchase invoices
• EC Sales Lists (recapitulative statements), where applicable
• Import and export documentation
• Accounting records and journals supporting VAT calculations
• Intrastat reports, where thresholds are exceeded

Records must generally be retained for at least 10 years and must be made available for inspection by the AED upon request.

VAT payments are due on the same date as the VAT return filing deadline (generally the 15th day following the reporting period for periodic returns).

Late payments may result in interest charges, administrative penalties, and additional sanctions under Luxembourgian VAT law.

Input VAT may generally be reclaimed on goods and services used for taxable business activities, including:

• Goods purchased for resale
• Capital assets and business equipment
• Professional services, utilities, and overhead costs
• Import VAT on goods used in taxable supplies
• Pro rata deductions for mixed-use expenses where permitted

Input VAT is not deductible on private or non-business expenses. Specific restrictions may apply to certain expenses, such as passenger vehicles, entertainment costs, and expenses not directly linked to taxable activities.