The Luxembourg VAT authorities have just released their 2016 annual activity report. While this document discloses last year’s milestone figures, it also sets their objectives for 2017. In the light of the tax reform, VAT authorities will particularly beef up penalties and introduce personal liability of directors while intensifying electronic audits. Here’s what you can expect in the coming months.
2016 was about consolidation
broader scope of duties
In 2016, the Luxembourg VAT authorities broadened their duties. Case in point: they embraced anti-money laundering, automated sanctions and included impôt dans l’intérêt des services de secours. The VAT authorities have to take on these new responsibilities and face these challenges, while at the same time deal with the scarcity of human resources. And this turns out to be a significant issue for them now.
more transparency
The Luxembourg VAT authorities made a point in increasing their transparencytowards the public, e.g. publishing brochures, issuing Frequently Asked Questions, sending newsletters or creating a dedicated helpdesk.
e-audits on the rise
The number of audits performed in 2016 decreased compared to last year. Conversely, e-audits based on FAIA files increased by 21%. In particular, the VAT authorities focused their audits on high-risk profiles. This reads in conjunction with the limited number of inspectors to perform manual audits. We can, therefore, expect an increase of FAIA-based controls.
2017 will be tougher
The VAT authorities intend to:
improve the criteria leading to automatic assessments of the VAT returns;
progressively extend the electronic fileof each VAT taxable person and gradually include in it all the documents and relevant data collected through VAT audits;
continue the automation of the VAT collection procedures;
improve risk analysis;
introduce a sectoral risk analysis, strategic study and exploration of new data miningtechnics.
Frédéric Wersand, VAT Leader
The mission of the authorities and the recent changes to the law point to the same direction: to enforce the right collection of tax. What’s more, the legal arsenal is broader than ever and IT tools are increasingly efficient. Any VAT underpayments, breaches of compliance, wrong returns or missing registrations will lead to severe penalties. So, we strongly recommend having sanity checks and VAT management processes.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.