As usual, like at the beginning of each year, Luxembourg VAT taxable persons received VAT account statements from the Luxembourg Treasury. For some of them, these statements show a negative amount which corresponds to a VAT credit towards the Luxembourg Treasury.
Such VAT credits are usually not refunded automatically within a short time frame and it is common to have to wait three to four years to get the reimbursement. Fortunately, the Luxembourg VAT law provides a mechanism to accelerate the VAT refund process and thereby optimise companies’ cash flows.
In this Alert, our Head of Indirect Tax Partner Thibaut Boulangé, our Indirect Tax Principal, Silvin Leibengut, and our Indirect Tax Directors, Justine Guilluy, Joana Machado Lima Das Neves & Lionel Van Der Noot, outline how businesses can enhance their cash flow by strengthening their VAT credit management practices.