Luxembourg presents Bill to introduce VAT Warehousing
- 19 May 2011 | Richard Asquith
A bill has been presented by the Luxembourg government to introduce VAT Free-zones with the aim of increasing it’s competitiveness as a commodity trading and logistics hub.
In addition to the existing available Import VAT deferment scheme, these free-zones will allow goods and commodity traders, to import, buy, store and sell their products under VAT suspension. As with other Member States operating such schemes, Luxembourg VAT will be payable at the time the goods are removed from the free-zone warehouses into free circulation in Luxembourg.
The scheme will also cover services ancillary to the goods held in the free-zones, such as handling, storage and valuations.
Further information about this scheme, and the obligations of non-resident traders wishing to make use of it, will be published soon.