Luxembourg: VAT administrative tolerance revoked as of 12 May 2020 (COVID-19)
Luxembourg: VAT administrative tolerance revoked
The Luxembourg value added tax (VAT) authorities on 12 May 2020 announced the end of an “administrative tolerance” for late submissions of VAT returns—that is, relief allowed in response to the coronavirus (COVID-19) pandemic.
Accordingly, all pending VAT returns not yet submitted because of the pandemic—in particular January and February 2020 monthly VAT returns—need to be filed as soon as possible to avoid potential penalties. No specific provisions regarding a transitional period or progressive measures are foreseen.
Enforced collection of tax debts is suspended for the time being.
Read a May 2020 report prepared by the KPMG member firm in Luxembourg
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.