According to l’Echo of July 31st 2020, relying on information published in the magazine Paperjam, the Grand Duchy of Luxembourg has not yet paid Belgium 90 million Euros that had to be transferred before the end of March 2020. This sum is due pursuant to a clearing procedure of VAT and excises collected by the Luxembourg tax authorities. This is the consequence of a customs union between Belgium and Luxembourg signed in 1921. According to well-informed sources, the amount of taxes to be transferred from one country to another is determined during a yearly dinner, from which one may conclude that such a clearing is not supported by any sophisticated methodology or statistics. Probably because of Covid-19 restrictions, or other unknown reasons, this year the clearing procedure faces a problem.
Source: Christian Amand (Xirius Lawyers, Brussels) on Kluwer
Latest Posts in "European Union"
- Business Leaders Call on EU to Modernize Customs Union and Revive Türkiye Membership Talks
- EU VAT Compliance Gap Hits €128 Billion in 2023, Driven by Six Major Economies
- EU Triangular Transactions: More Than Three Parties Allowed, Rules European Court in 2025 Decision
- INTA Reviews EU Proposal to Extend CBAM to Downstream Goods and Strengthen Anti-Circumvention Measures
- European Commission Evaluates Fiscalis Programme’s Impact on EU Tax Fraud Prevention and Cooperation
