Carousel fraud is illegal VAT transactions. Related companies use intra-EU cross-border trade to illegally make VAT refund claims to the government.
Now the Luxembourg government has decided to submit a bill to parliament amending the law of February 12, 1979. The purpose of the bill is to expand the range of transactions covered by the reverse charge mechanism. Therefore, from 1 January 2024, taxable persons purchasing the following goods will be subject to VAT in Luxembourg. The list includes supplies of mobile phones, tablet computers, laptops, game consoles, integrated circuits, raw metals or semi-finished products defined in Appendix F by their nomenclature code.
Tax is payable by the taxpayer making supplies of the goods mentioned above if the remuneration within the meaning of Article 29 of the VAT Code corresponding to those supplies, invoiced in accordance with Article 63, does not exceed €10,000 excluding tax.