Skip links

Luxembourg domestic VAT reverse charge to combat fraud 2024

B2B Computer chips, mobile phones, laptops and precious metals put under Article 199 may provision

Luxembourg is to adopt the VAT reverse charge on the small of a range of small, high-valued goods prone to VAT fraud. The option under Article 194 of the VAT Directive permits member states to effectively remove to the cash payment of VAT on B2B transactions. It may be deployed where the member state believes there are casing of missing trader or carosel fraud.

The reverse charge means the customer does not need to pay the supplier any VAT, and the supplier reports this via their VAT return.

Under new proposed law, Luxembourg will subject the following supplies to the reverse charge on transactions exceeding €10,000:

  • Computer chips
  • Games consoles
  • Laptops and computer tables
  • Mobile phones
  • Certain precious metals
  • Antiques

The new measure will come into effect from 1 January 2024. It has been accepted to Parliament for review in November 2023.

EU VAT General and Domestic Reverse Charge rule by country

Country General RC (art 194) Domestic Reverse Charge (art 199)
Domestic goods * Immoveable Property Installation Construction Scrap metal Mobile Phones Gas & electricity Carbon Trading
Austria Yes Yes Yes Yes Yes Yes Yes Yes
Belgium Yes Yes Yes Yes - - Yes Yes
Bulgaria - - Yes - Yes - Yes -
Croatia Yes Yes Yes Yes Yes - Yes Yes
Cyprus - - Yes Yes Yes Yes Yes -
Czech Republic Yes - Yes Yes Yes Yes Yes Yes
Denmark - - Yes - Yes Yes Yes Yes
Estonia Yes Yes Yes - Yes - Yes -
Finland Yes - Yes Yes Yes - Yes Yes
France Yes - Yes Yes Yes - Yes Yes
Germany - Yes Yes Yes Yes Yes Yes Yes
Greece Yes - - - Yes Yes Yes Yes
Hungary  - Yes Yes Yes Yes - Yes Yes
Ireland - Yes Yes Yes Yes - Yes Yes
Italy Yes Yes Yes Yes Yes Yes Yes Yes
Latvia - - Yes Yes Yes Yes Yes -
Lithuania Yes - Yes Yes Yes - Yes -
Luxembourg - - - - - - Yes Yes
Malta Yes - Yes Yes - - Yes -
Netherlands Yes Yes Yes Yes Yes Yes Yes Yes
Poland Yes - Yes Yes - - Yes Yes
Portugal Yes Yes Yes Yes Yes - Yes Yes
Romania Yes Yes Yes - Yes Yes Yes Yes
Slovakia Yes Yes Yes Yes Yes Yes Yes Yes
Slovenia Yes Yes Yes Yes Yes - Yes Yes
Spain Yes Yes Yes Yes Yes Yes Yes Yes
Sweden  Yes - Yes Yes Yes Yes Yes Yes
Non-EU
Norway - - - - - - - -
Switzerland Yes - Yes - - - Yes -
UK - - Yes - - Yes Yes Yes
* Further local rules on the VAT status of the supplier and their customer need to be considered to determine if RC applies

Newsletter

Get our latest news right in your mailbox