- Luxembourg businesses often face long delays (3-4 years) in receiving VAT credit refunds from the Treasury, impacting cash flow.
- Companies most affected include those with more input VAT than output VAT, such as financing companies with non-EU borrowers, property companies with foreign VAT, and those under the simplified VAT regime with overpayments.
- VAT account statements, indicating credit or payable positions, are sent annually by mail or can be accessed via the eTVA portal.
- Without proactive action, VAT credits are carried forward and only offset against future liabilities; refunds are not automatic and require assessment by authorities, causing further delays.
- Strengthening VAT credit management and using available legal mechanisms can help businesses accelerate refunds and optimize cash flow.
Source: atoz.lu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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