Newsletter: Company cars: Where is VAT due in a cross-border context? What are the implications for employers?

When an employer provides his employees with a company car used for private purposes, this constitutes a service subject to VAT. Traditionally, this VAT was payable in Luxembourg, regardless of the employee’s country of residence.

Following a new interpretation of the relevant legal provisions, VAT is now payable in Luxembourg or in the employee’s country of residence, depending on certain criteria.

Get all the details here