According to l’Echo of July 31st 2020, relying on information published in the magazine Paperjam, the Grand Duchy of Luxembourg has not yet paid Belgium 90 million Euros that had to be transferred before the end of March 2020. This sum is due pursuant to a clearing procedure of VAT and excises collected by the Luxembourg tax authorities. This is the consequence of a customs union between Belgium and Luxembourg signed in 1921. According to well-informed sources, the amount of taxes to be transferred from one country to another is determined during a yearly dinner, from which one may conclude that such a clearing is not supported by any sophisticated methodology or statistics. Probably because of Covid-19 restrictions, or other unknown reasons, this year the clearing procedure faces a problem.
Source: Christian Amand (Xirius Lawyers, Brussels) on Kluwer
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