Should the provision of vehicles to staff members be considered as “a hiring of a means of transport” to a non-taxable person? And, where should these services be taxed for VAT purposes: in the country of the employer or the employee? The European Court of Justice (CJEU) recently ruled that the provision of a vehicle to an employee should be considered as a hiring of a means of transport and be taxable in the country of the employee when made against remuneration. Employers providing company cars to their employees residing abroad should examine the impact of this case, as it may imply potential liabilities and additional VAT obligations in other countries and, therefore, an additional administrative burden.
Source Deloitte
Latest Posts in "Luxembourg"
- Luxembourg Proposes Phased Mandatory Domestic B2B E-Invoicing from 2028 to 2029
- Luxembourg Sets Phased Mandatory Domestic B2B E-Invoicing Rollout for 2028–2029
- Luxembourg Draft Law Implements First ViDA Measures from 1 January 2027
- Luxembourg Submits First-Stage ViDA VAT Bill Covering Platforms, OSS and Call-Off Stock
- Beyond Compliance: Understanding Luxembourg’s e-invoicing complexity
