Luxembourg – Rules for VAT deduction of overheads have been enshrined

In decision no. 2024TALCH14/00058, Luxemburg judges confirm the position of the Administration de l’Enregistrement, des Domaines et de la TVA (AEDT) on the right to deduct VAT on overheads.

To claim the VAT deduction, the company must demonstrate the direct and immediate link between the expenses for which it wishes to deduct VAT and its taxable economic activity.

The company bears the burden of proof, and is therefore urged to keep accurate and exhaustive overhead documentation. Thus, an invoice simply describing“professional services for the period…” or“legal fees” will no longer allow VAT to be deducted.



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