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11.3. Refund of VAT to Non-Residents

Luxembourg generally allows for the deduction of input VAT to offset output VAT for taxpayers registered for VAT. When input VAT exceeds output VAT in a given period, it is carried forward to offset future VAT payable. If the excess exceeds EUR 1,200 a refund may be claimed. Interest is paid if the refund is not processed within 4 months of the refund request is made. If any additional information is requested, the time period threshold for interest payment is 6 months.

When a supplier is not resident in Luxembourg nor required to register for VAT, they are generally able to claim a refund. The process depends on whether the non-resident is resident in another EU Member State or is resident in a non-EU country.

Resident of an EU Member State

For residents in an EU Member State, refunds are made under the terms of EU Directive 2008/9/EC. The claim must be made by filing an application electronically in the EU Member State in which they are resident.

The minimum claim period is generally three months and the maximum is one year. The minimum claim for a period of less than a year is EUR 400, and the minimum for an annual claim is EUR 50.

The deadline for a refund claim for EU residents is 30 September of the year following the year in which the VAT was incurred.

Residents of a non-EU country

For residents of a non-EU country, refunds are made under the terms of the EU 13th Directive. Luxembourg does not require reciprocity. The claim must be made in the English, French or German language and must be supported by valid original invoices.

The minimum claim period is one year, and the minimum claim is EUR 250.

The deadline for a refund claim for non-EU residents is 30 June of the year following the year in which the VAT was incurred.