Navigating Occasional and Temporary Provision of Services in Luxembourg
In the vibrant landscape of international business in Luxembourg, companies often find themselves engaging in occasional provision of services on the territory of Luxembourg. Those without a permanent establishment in Luxembourg have certain legal obligations that must be adhered to. Such companies may need to notify the Luxembourg administration of their intent to provide services within the country, and this is done through a specific declaration known as the “Notification of services”. In this article about provision of services in Luxembourg we will explain what is the Notification of Services, when do you need to submit it and how it works.
- Posted :
- Reading Time : 4 min.
Provision of Services in Luxembourg: Notification of Services
What is the Notification of Services in Luxembourg?
The Notification of Services in Luxembourg is a special declaration that businesses without a permanent establishment in Luxembourg, but engaging in temporary or occasional provision of services need to submit before starting any activity. The notification is a required formality by the authorities in Luxembourg.
Provision of Services in Luxembourg: Which companies are concerned by notification of services?
For companies based outside the European Economic Area or Swiss Confederation, it is mandatory to submit a notification for all types of services they offer.
Similarly, companies established in one of the Member States of the European Economic Area or Swiss Confederation that conduct occasional and temporary commercial, craft, manufacturing, or self-employed activities must also submit a special notification for occasional services before commencing their operations.
The only exception to this requirement applies to businesses involved in commercial or liberal professions, such as architects, engineers, chartered accountants, surveyors, patent attorneys, and economic advisors. These professions require a business permit but are exempt from the notification requirement
How to file the Notification of Services ?
Before engaging in any occasional and temporary service provision in Luxembourg, foreign craft or industrial businesses are required to notify the General Directorate for Small and Medium-Sized Enterprises. This notification should be made using the appropriate form and submitted to the Ministry of the Economy through one of the following methods:
- By post:
Ministère de l’Économie
Direction générale des Classes moyennes
B.P. 535
L-2937 Luxembourg
- By email : certificats@eco.etat.lu
To download the form click here:
The form needs to be sent together with different accompanying documents that vary depending whether the company submitting the Notification of Services is established in one of the Member States of the European Union or not, and whether this is the first time the company is submitting this declaration.
However the documents that need to be attached in each cases are for example: extract from the trade register (valid in the last 6 months) or tax stamp.
Validity of the Notification of Services in Luxembourg
The Notification of Services for temporary or occasional provision of services in Luxembourg is valid 12 months and needs to be renewed each year if the company still engages in the same activity on the territory of Luxembourg.
Schedule a free consultation with our expert
When can you start providing services in Luxembourg?
Companies engaging in provision of services that are required to submit the notification of Services need to submit it BEFORE starting any work on the territory of Luxembourg.
Once the Luxembourg administration receives the form and all the necessary documents the General Directorate for Small and Medium-Sized Enterprises regarding the occasional and temporary provision of services in Luxembourg will send a special document to the declarant. This document serves as proof of the notification and can be utilized as supporting documentation for other relevant administrations if required.
Importantly, the business can proceed with its work even before receiving the supporting document. There is no need to wait for the document to start operations in Luxembourg. However, having the supporting document can be beneficial for any interactions with other administrative bodies or authorities that may request proof of notification.
What are other obligations for Occasional and Temporary Provision of Services in Luxembourg?
The Notification of Services is not the only obligation that companies established outside the territory of Luxembourg and engaging into provision of services in Luxembourg might have.
Some of the other obligations are :
- Declare the VAT applicable to supply of services : if you are providing services to another company (B2B), the VAT is payable in the country of residence of the customer – in this case in Luxembourg. You are therefore required to declare and pay the VAT via the VAT return
- Submit the declaration of posting of workers : Every business sending workers to Luxembourg, regardless of the duration of the posting, is required to submit a posting declaration to the ITM (Inspection du Travail et des Mines). In other to learn more about this declaration : Posting of workers
- Pay the income tax : In the country of your permanent establishment
Provision of Services in Luxembourg: Conclusion
In conclusion, understanding and complying with the process of the Notification of Services is vital for businesses engaged in temporary or occasional provision of services in Luxembourg. By fulfilling this obligation, companies can navigate the regulatory landscape smoothly and seize the numerous opportunities that the vibrant business environment of Luxembourg has to offer.
With the aid of Eurofiscalis, navigating the regulations surrounding occasional services in Luxembourg becomes even a smoother journey, empowering companies to focus on their core operations while adhering to the necessary obligations.
Rising VAT rockstar at Eurofiscalis I have a passion for unraveling the complexities of VAT regulations in the European Union (especially Benelux region). My mission is to empower readers to navigate the ever-changing VAT landscape with ease and to answear your questions in a clear and concise way.
Click now to unlock your international potential!
