Updates on Value-added tax in Europe

After a European Court of Justice (ECJ) judge on a legal case on the Value-added tax (VAT), the practice of VAT in Belgium and Luxembourg are widened.

The ECJ judgement confirms that taxable transactions performed by a non-Belgian established head office to its Belgian branch which is part of a Belgian VAT group, or vice versa, are subject to VAT, as long as one of the branches belong to a VAT group. Also, the Belgian government will not be able to issue new individual global VAT identification numbers for the VAT group. The ECJ seems to indicate a unified EU VAT identification number.

For Luxembourgian, the ECJ judgement clarified the upcoming VAT-related bills. Luxembourg will have a similar VAT policy, which following the EU clarified standard, as the Belgian.

However, the ECJ decision needs the relevant authorities in Belgium and Luxembourg to ratify to take into effect.

Thank you our corporate member Loyens & Loeff for providing the latest news on Belgian and Luxembourg taxation. To read their article on this issue Click here.