What is new?
Any VAT taxable person that uses an electronic accounting system will have to deliver to the Luxembourg VAT authorities, upon request (that is in case of a VAT audit), all accounting information existing in electronic format in a structured electronic file. The file (FAIA – Fichier d’Audit Informatisé de l’Administration de l‘Enregistrement) has to meet the technical requirements set by the Luxembourg VAT administration. The technical requirements are in principle based on the OECD’s guidelines for Standard Audit File for Tax (SAF-T).
When is the new obligation applicable?
The law has been adopted in December 2008 with application from the 1 January 2011, however, due to significant changes in VAT legislation in 2010 and the introduction of the obligatory standard chart of accounts in Luxembourg in 2011, the enforcement has been postponed to 1 January 2013 (tax years 2011 and later). The tax administration indicated that, in the first phase, without specifying the time frame, they will request FAIA from companies that:
• are subject to the Luxembourg standard chart of accounts
• do not benefit from simplified VAT regime
• exceed yearly turnover of EUR 112 thousand
• exceed 500 accounting transactions per year
What is the purpose of the new requirement?
The purpose of the new requirement is to facilitate data transfer and exploitation in VAT audits. It is possible that FAIA will in the future replace VAT declarations.
What do I need to do?
If we are providing accounting services to you, there is no need for any action on your side. We are adapting our systems in order to be fully compliant before the year end.
If we are not providing accounting services to you or the accounting is done by TMF in your own accounting software you need to develop an appropriate IT solution for your accounting software.
For more information please refer to the website of the Luxembourg VAT authorities http://www.aed.public.lu/FAIA/ (mostly in French). For information on the SAF-T file you can also consult the OECD website http://www.oecd.org