Luxembourg VAT Administration Issues Circular on Taxation of Company Cars

The Luxembourgish Inland Revenue April 28 issued Circular No. 807bis, explaining the tax treatment of employer-provided cars. Topics covered include: 1) tax consequences for employer-provided cars under different circumstances; 2) provision of a car that employees may use for private trips; 3) VAT obligations on company cars; 4) tax consequences for consideration paid through withholding part of the employee’s cash remuneration; and 5) determination of the normal value for taxation of employer-provided cars. [Luxembourg, Land Registration and Estate Department, 04/28/23]

Reference: View Announcement. Veiw Circular No. 807bis. View Index.