- Luxembourg VAT-registered businesses may receive VAT credits when input VAT exceeds output VAT.
- VAT credits are often refunded after three to four years, affecting cash flow.
- Companies can proactively request refunds, usually processed within four months.
- Better VAT credit management speeds up reimbursements, improves cash flow, aids audits, and eases interactions with tax authorities.
Source: taxand.com
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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