|A new law as regards VAT grouping has recently entered into force in Luxembourg.
Luxembourg-based entities who share organisational, economic or financial links are now entitled to establish a VAT group. The new rules will provide administrative simplification by enabling the group to file group declarations. Additionally, the new law will potentially enable groups to recover what would previously have been non-deductible input VAT.
The law entered into force on 31 July 2018 and was published on 10 August 2018.