VAT and provision of company cars to employees - new clarifications
New clarifications issued by the Luxembourg Authorities regarding VAT and provision of company cars to employees.
On 21st October 2025, the Luxembourg VAT Administration (hereafter “AEDT”) published Circular n° 807-1 repealing the previous Circular n° 807 bis.
This new guidance clarifies and consolidates the Luxembourg position in the light of the QM Case (Case C-288/19 issued by the Court of Justice of the European Union on 20th January 2021) and provides practical implications for employers offering company cars to their employees.
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