Reporting and accounting for VAT in compliance

VAT is an indirect tax which may seem relatively simple to handle. In practice, however, we see that many questions arise that are a real concern for businesses. This concern intensifies as VAT is governed by a set of rules that is regularly subject to significant changes. The numerous case-laws from the Court of Justice of the European Union, which regularly rules on the interpretations of the EU VAT legislation, further complicate the subject.

In Luxembourg, the introduction of new VAT measures since January 2017 (increase in VAT penalties, introduction of the personal and joint liability of directors, managers and managers de jure and de facto of companies) underlines the importance to constantly comply with the provisions of the Luxembourg VAT law. In particular, it is important that businesses, operating in the financial or non-financial sector, have sufficient comfort regarding the VAT treatment applied to their operations.

In order to understand the risks and opportunities associated with the application of the VAT rules, PwC's Academy is pleased to offer you this training which alternates theoretical content with practical exercise workshops, oriented to both financial and non-financial sectors.

At the end of this training, participants will be able to:

• use a rigorous methodology to determine the VAT treatment of a basic transaction, limiting the risk of error;
• explain the rules applicable for the recovery of input VAT;
• identify the risks and opportunities associated with VAT in specific situations;
• complete a VAT return and correctly fill in the input and output VAT part;
• have a good knowledge of the VAT compliance obligations, the applicable accounting requirements and the procedures to be followed vis-à-vis the Luxembourg VAT authorities.

Theoretical part

• Basic VAT rules explained via the "5 questions" method:

1) Who carries out the transaction (is it a taxable person or not)?
2) What type of transaction is it (whether or not within the scope of VAT)?
3) Where did the transaction take place?
4) Is a VAT exemption applicable?
5) Who is the person liable for VAT (eg reverse charge mechanism)?

• The different VAT rates in Luxembourg
• VAT deduction method
• Mandatory information on invoices
• Electronic filing of declarations and summary statements
• VAT and accounting: basic rules and good practices

Practical part

• Specific exercise workshops for the financial sector and for the non-financial sector, focusing in particular on:
• How to complete a VAT return and a European Sales Listing of goods/services ("ESL")
• Practical exercises on specific points

This training is coordinated by Marie-Isabelle Richardin, Tax Partner at PwC Luxembourg in the VAT department. Sessions are led by tax specialists from PwC Luxembourg dealing with VAT transactions on a daily basis.