Immunities and Privileges

VAT exemption for cars in Luxembourg

The effective date of this decision has been postponed until 01.03.2012.

With reference to the information published on 31/01/2012, the Administration de l'Enregistrement et des Domaines has decided to implement Article 2 of the Grand Ducal Regulation of 19/12/1969 which excludes the VAT exemption for vehicles for people residing in Luxembourg at the time of first taking up their duties within the European Institutions.

Following the letter from the President of the College of Heads of Administration, the date of application of this decision has been postponed until 01/03/2012.

Officials and other servants who have been denied or who have waived the claim for exemption from VAT for their car can (re-) submit their application to the Welcome Office - Luxembourg.  The application must be received by the VAT Office no later than February 29, 2012

Contact: DG.HR.B.1 - Luxembourg Welcome Office E-mail:  hr-b1-lux-bureau-accueil@ec.europa.eu

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To summarise, for colleagues who have already submitted an application (and been refused), it is advisable to re-submit it.

NOTE: As stated on Intracomm, the applications concerned must reach the Tax Office before 29/02/12 at 11:30!!!


 

VAT-free purchases - International officials not having diplomatic status - Application from 1 March 2012

Directorial decision of 25.10.2011

Exemption from value-added tax (Grand-Ducal Regulation of 19 December 1969) - International officials not having diplomatic status.

The constitutional principle of equality before the tax system implies that any derogation from the general tax rules must be interpreted strictly. In accordance with Article 2 of the Grand-Ducal Regulation of 19 December 1969, adopted pursuant to section 47 of the Act of 5 August 1969 on value added tax, laying down the rules for implementation of VAT exemptions resulting from international agreements to which the Grand Duchy of Luxembourg is party, officials of international organizations and their agencies enjoy a value-added tax exemption when they first take up their duties in the country.

This text expressly states that such relief can only be granted to persons resident in the country at the time of first taking up their duties. From 1st January 2012, the relevant tax office will ensure that this exclusion is respected, particularly when private cars are purchased.

http://www.aed.public.lu/actualites/2012/01/Franchises_TVA/index.html

 

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