It will be very important for companies to understand the new VAT rules for the taxation of services they render to clients established abroad and services purchased from foreign providers.

The “VAT package” is a set of new rules that will enter into force as from 1 January 2010. The “VAT package” will among others implement Directive 2008/8/EC dated 12 February 2008 into the Luxembourg legislation and will introduce a new general rule regarding the taxation of services. Furthermore, the procedures for refund of foreign VAT to EU VAT payers will become automated and simplified.

The new general rule for the taxation of cross-border services will imply a more frequent use of the reverse charge mechanism. As from 1 January 2010, in order to ensure the correct application of the reverse charge rule, a VAT taxable person who supplies services for which the recipient located in another member State is liable to pay VAT in its country will be obliged to report these in a recapitulative list of intra-Community services.

There will also be new legislation concerning the combat of VAT fraud and the exchange of information between Member States (Council Directive 2008/117/EC of 16 December 2008). The draft law also introduces simplification measures for the invoicing of transactions that are VAT exempt.

An adequate preparation for the new VAT rules can mitigate or avoid risk of VAT assessments and fines. It could also reduce administrative costs and other obligations.

After the training, participants will be able to:

• apply the new rules regarding the VAT taxation of services as regards the place of taxation that are the most common
• understand and apply the new VAT reporting obligations and invoicing simplifications
• apply the new procedures for the refund of VAT incurred in another Member State

Theory part

• New rules for the place of taxation of services: what will change?
• New definition of the VAT taxable person for the place of taxation of services
• Business to Business services:
     - New general rule for the place of taxation and application of the reverse charge mechanism (recipient liable to pay VAT)
     - Exceptions applicable to specific services (training services, hiring of means of transport, etc.)
• Business to Consumer services:
     - New rules applicable to specific services
• New reporting obligation for intra-Community services: explanation of the recapitulative list of services
• Content of the reporting and what information to collect from the clients
• Frequency and format of the recapitulative list of intra.Community services
• New procedures for the refund of VAT incurred in another Member State
• Introduction to the procedure of VAT refunds
• Information on the refund claim procedure and deadlines for VAT refunds
• Other proposed changes of the Luxembourg VAT legislation as from 1 January 2010
• Simplification measures for the invoicing of VAT exempt services
• The electronic filing of VAT returns and the recapitulative list of intra-Community services/goods

Practical part

• Exercises illustrating the changes in the VAT treatment of services
• Practical cases illustrating the situation before/after January 2010
• Examples of services which should be reported in the recapitulative list of intra-Community services

The analysis of the various practical cases will be done in separate sub-groups for the financial sector and non-financial sector.

• Accountants
• Employees dealing with tax implications
• Personnel in charge of invoicing (billing administrators)
• Personnel in charge of purchase (AP staff)
• Internal auditors (invoicing, VAT accounts)

This training is coordinated by Anne Murrath, Tax Partner and Marie-Isabelle Richardin, Tax Director at PricewaterhouseCoopers Luxembourg.

Modules will be given by Tax specialists of PricewaterhouseCoopers Luxembourg working on VAT transactions and international issues on a daily basis.

English

4 hours

The premises of PwC ACADEMY located 400, route d’Esch, Z.I. Cloche d’Or, Luxembourg-Gasperich.

An invoice will be sent to you at the end of the training.

For organisational purpose or in case of absolute necessity, we reserve the right to delay or cancel training events. In such cases, participants will be advised at the latest five business days before the event.

Any cancellation should be communicated in writing at the latest five business days before the event. Thereafter, full fees will be invoiced. Substitution of one participant by another is possible and can be done at any time upon written notice.

An attendance certificate will be sent to participants.

The modules described here can be organised in your premises or can be adapted to your specific needs. Do not hesitate to contact us if you are interested by tailored solution.

Registration fees are eligible for State co-financing in accordance with the legislation relating to the support and development of continuing vocational training. PwC ACADEMY is authorised as a provider of continuing vocational training under registration number 94523/C.