To be or not to be…duly motivated. That is the question for claims against VAT assessments

A judgement of the Luxembourg first tier tribunal (“tribunal d’arrondissement”) on 1 February 2023 ruled that it is contrary to EU law that the VAT authorities require that a claim against an arbitrary tax assessment (“bulletin de taxation d’office”) has to be “duly motivated” to be admissible. The provisions of the Luxembourg VAT law are, according to the “tribunal d’arrondissement”, neither in line with the principle of equivalence (i.e. the comparison with the direct tax procedure) nor in line with the principle of effectiveness (i.e. the possibility for a taxable person to lodge a claim without the procedure to be followed being insurmountable or made particularly difficult).

Source PwC

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