Domestic reverse charge extended to supplies of certain electronic devices and metals
Domestic reverse charge extended to supplies of certain electronic devices and metals
Following the example of other EU Member States, Luxembourg has extended its domestic reverse charge mechanism to apply to certain supplies of electronic devices and metals in an effort to combat the growing risk of the so-called “carousel fraud” in these sectors (Law of 22 December 2023). Carousel fraud occurs mostly within a chain of participants where a recipient claims an input VAT refund for an amount of tax which has not actually been paid by the supplier to the tax authorities.