VAT audits – trends and approaches

• The EU has been increasing controls on VAT taxation, with measures such as the “VAT in digital age” initiative for real-time reporting of VAT.
• The Court of Justice of the European Union helps to clarify and harmonize VAT rules.
• Luxembourg has detailed VAT returns and businesses must ensure correct VAT treatment for each transaction.
• VAT audits may be initiated through discrepancies in sales listings or through exchange of correspondences or on-site audits.
• Companies should be transparent and proactive in dealing with VAT Authorities during audits.

Source Loyens Loeff

---

---