Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014 - (Page 6)
Lux News
Luxembourg
Tax News
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°84 - JAN
/ FEV / MAR 2014
VAT and risk management services for
funds: new circular
issued
6
In November 2013, the
Luxembourg VAT Authorities
Administration d'Enregistrement et des Domaines (AED)
issued the Circular No. 723ter
(the Circular) confirming that
risk management services for
funds could be VAT exempt.
The exemption based on
Article 44.1.d) of the Luxembourg VAT Law, as amended,
is available for UCITS as well
as Alternative Investment
Funds (AIF). For further
information, see the Tax
Alert entitled Revised list of
investment funds capable to
receive VAT exempt management services. The Alert can
be downloaded from the tax
section of the EY Luxembourg
website ey.com/lu.
The Circular confirms that
the risk management services
should be considered as
management services exempt
from VAT pursuant Article
44.1.d) of the Luxembourg
VAT Law.
When the manager subcontracts a part of these
services to a third party, the
VAT exemption applies under
certain conditions; the Circular refers to the Circular No.
723bis of 30 April 2010 which
confirms that sub-contracted
services are VAT exempt to the
extent that these service
* Are not be considered as
"isolated" services
* Meet certain criteria defined
by the Court of Justice of the
European Union:
- Viewed broadly forming
"a distinct whole" and
"specific and essential to
the activity of the fund"
Abbey National case -
C-169/04 of 4 May 2006
- "Intrinsically connected to the activity of
the fund" GfBk case -
C-275/11 of 7March 2013
This Circular is a positive
step for the Luxembourg
investment fund industry
by ensuring a favorable VAT
treatment to services as fundamental as risk management
services. Investment funds
have, in principle, no right
to recover the VAT incurred
on their costs. However, it
is important not to rely on
this Circular to apply the VAT
exemption to any type of
service rendered to a fund or
delegated to a third party by
the manager of a fund or by
other services provider. A careful, "case by case" approach
remains advisable. It is also
important to keep in mind
that the exemption implies
that services providers cannot
recover the VAT incurred on
their own costs.
Michel Lambion,
Indirect Tax Leader
michel.lambion@lu.ey.com
Olivier Lambert,
Senior Manager
olivier.lambert@lu.ey.com
VAT on
non-compliant
purchase invoices
In May 2013, the Court of
Justice of the European Union
(CJEU) has ruled in case
C-271/12 (Petroma Transports
S.A.) that national tax authorities are entitled to refuse
input VAT deduction where
the purchase invoice lacks
required information, even
when the missing information is obtained after the VAT
audit.
Businesses receiving VAT
invoices should therefore
check that they have adequate
controls in place to ensure
that purchase invoices -
including inter-company
invoices - are fully compliant,
and that any non-compliant
invoices are challenged
promptly. This will be particularly important for businesses that operate Shared
Service Centers or that rely on
a Business Process Outsource
(BPO) service provider to
handle and post Accounts
Payable invoices.
Businesses that issue VAT invoices should ensure that they
are complete and fully compliant with EU Directives, in
order to minimize the risk of
customers seeking to recover
from them VAT that has later
proved to be irrecoverable.
Suppliers should also ensure
that they have procedures
in place promptly to correct
any non-compliant invoices
that may be challenged by
customers.
Michel Lambion,
Indirect Tax Leader
michel.lambion@lu.ey.com
Yannick Zeippen,
Indirect Tax Partner
yannick.zeippen@lu.ey.com
VAT on cars put at the
disposal of employees
residing in Germany
by a foreign employer
In September 2013, the
Luxembourg AED announced
to refer to the VAT committee
of the Council of the European Union, in order to clarify
whether the new German
interpretation of the German
VAT Law, as amended, on the
tax treatment of the private
use of a car which is made
available by a foreign resident
employer to its employees
residing in Germany is compatible with the Luxembourg
applicable VAT provisions. At
this time, Luxembourg considers this as a kind of fringe
benefit subject to Luxembourg
VAT.
The German position follows
a change in the rules applicable to the localization of
cross-border lease of means
of transport (including cars)
to nontaxable persons (such
as individuals). In September
2013, the German Ministry
http://www.ey.com/lu
Table des matières de la publication Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014
Couverture
SOMMAIRE
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Martin Sadleder- Treamo Business Consulting
FOCUS
FORUM
CORPORATE FINANCE
15 MINUTES WITH CRX Markets
NEWS
THE FINANCIAL RISK OBSERVATORY
Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014
https://www.nxtbook.fr/newpress/atel/99-4T2017
https://www.nxtbook.fr/newpress/atel/98-3T2017
https://www.nxtbook.fr/newpress/atel/97-2T2017
https://www.nxtbook.fr/newpress/atel/96-1T2017
https://www.nxtbook.fr/newpress/atel/95-4T2016
https://www.nxtbook.fr/newpress/atel/94-3T2016
https://www.nxtbook.fr/newpress/atel/93-2T2016
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/92-1T2016
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/91-4T2015
https://www.nxtbook.fr/newpress/atel/le-magazine-du-tresorier/90-3T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/89-2T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/88-1T2015
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/87-4T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/86-3T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/85-2T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/84-1T2014
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/83-4T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/82-3T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/81-2T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/80-1T2013
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/79-3T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/78-2T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/77-1T2012
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/76-4T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/75-3T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/74-2T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/73-1T2011
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/72-4T2010
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/71-3T2010
https://www.nxtbook.com/newpress/atel/le-magazine-du-tresorier/70-2T2010
https://www.nxtbook.com/newpress/atel/le_magazine_du_tresorier-69-1T2010
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-68-4T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-67-3T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-66-2T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-65-1T2009
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-63-3T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-64-4T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-62-2T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-61-1T2008
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-60-4T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-59-3T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-58-2T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-57-1T2007
https://www.nxtbook.com/newpress/atel/lemagazinedutresorier-56-4T2006
https://www.nxtbookmedia.com