VAT and Intragroup transactions
VAT risks and opportunities arising from intra-group transactions should not be underestimated. Operations such as mergers, recharges of costs or transfer pricing adjustments can quickly become particularly complex from a VAT standpoint. Additionally, the implementation of a VAT group should not be taken lightly as it can be complex to handle in practice.
In this course, we will guide you through common issues and pitfalls that arise from transactions occurring within related entities.
By the end of this training, the participants will be able to:
- Name the VAT opportunities and risks associated with the implementation of a VAT group
- Determine the relation between VAT and transfer pricing adjustments
- Draw up a list of concrete VAT implications of intra-group transactions, in particular recharge of costs, mergers and transfer of seats
- Identify pros and cons of VAT grouping for their organization
The course will focus on specific VAT topics and issues arising between related parties to enable you to identify the associated risks, opportunities and best practices. This course is not industry-specific. The experts will use practical examples from different industries according to the audience.
1. VAT implications of cross-border transactions between a head-office and a branch VAT treatment applicable
- VAT recovery right implications
- Relevant Case law
2. VAT grouping regime: main principles and key points to consider for implementation
- What is a VAT group?
- What are the conditions to apply for it?
- How to apply?
- Pros and Cons.
3. Transfer pricing adjustments and open market value
- Transposition of the Article 80 of the VAT directive in the Luxembourg VAT law.
- VAT treatment of transfer pricing adjustments: Taxable or outside the scope of VAT?
- What are the VAT practical consequences of TP adjustments?
4. Intra-group restructuring
- Transfer of a going concern.
- Transfer of seat
- Merger and de-merger.
5. Understand the key concepts of undisclosed agent and disclosed agent and their practical implications
- What are the differences between an undisclosed agent and a disclosed agent?
- What are the VAT implications surrounding these two concepts?
6. Recharge of costs: pitfalls and best practice?
- Practical implications.
- Best practice
A qui s'adresse la formation?
- Managers and Financial or Fiscal directors in charge of VAT management for Luxembourg.
- Accountants in charge of the preparation and filing of Luxembourg VAT returns.
- We recommend having a basic VAT knowledge prior to attending this course.