Guides an AI agent through the end-to-end Luxembourg TVA (VAT) compliance cycle: client intake, transaction classification at the correct rates (17%/14%/8%/3%), reverse-charge identification, and electronic filing via the AED eCDF portal. Produces a completed TVA declaration and supporting working paper.
Confirm the client holds a valid Luxembourg TVA number (LU + 8 digits) and establish the applicable filing frequency. Turnover above EUR 620,000 mandates monthly filing; EUR 112,000–620,000 triggers quarterly; below EUR 112,000 is annual (deadline 1 May). Also flag immediately if the entity is a holding company (SOPARFI/SIF/RAIF/SICAR) or a fund management company, as those require specialist escalation under refusal rules R-LU-1 and R-LU-2.
Gather the raw inputs needed to classify every transaction: bank statements (BCEE/BGL BNP Paribas/ING Luxembourg/Banque de Luxembourg/Raiffeisen CSV, DD/MM/YYYY, EUR), sales invoices, purchase invoices, and the prior period TVA declaration if a credit carry-forward may apply. Identify whether any mixed supplies or partial-exemption situations exist — these are common in Luxembourg's financial sector and trigger refusal rule R-LU-3.
Process every transaction line, applying Luxembourg's four TVA rates and exclusion rules. Standard rate is 17%. Reduced rates: 14% (wine, certain fuels, advertising printed matter), 8% (gas/electricity from CREOS/ENOVOS/SUDSTROUM, cut flowers, hairdressing), 3% (food, books, medicines, children's clothing, accommodation, restaurant/catering from 2024). Exclude financial services (BCEE, BGL, ING, Foyer/LaLux/AXA Luxembourg insurance), social security (CCSS), internal transfers (Virement interne), and salary payments. Apply EU reverse charge to services from Google Ireland, Microsoft Ireland, Adobe Ireland etc.; apply non-EU reverse charge to Notion, Anthropic, OpenAI, Figma, and similar non-EU SaaS. Note that Amazon EU SARL bills from Luxembourg and is domestic 17%, not reverse charge.
Aggregate the classified transactions into the official TVA declaration boxes: output tax by rate, intra-EU acquisitions, reverse-charge self-assessed tax, input tax recoverable, and any prior-period credit. Calculate the net tax payable or refundable. Verify the small-business exemption threshold (EUR 50,000 from 2025) does not apply. Flag restaurant/entertainment input tax for limited deductibility treatment before finalising the input tax claim.
Submit the finalised TVA declaration electronically via the AED eCDF portal (https://ecdf.b2g.etat.lu) using the client's LuxtrusT or LuxID credentials. Confirm the applicable deadline: monthly and quarterly returns are due by the 15th of the month following the period; the annual return is due by 1 May. Arrange payment of any balance due by the same deadline to avoid interest and penalties from the AED (Administration de l'enregistrement, des domaines et de la TVA).
Run this workflow in your AI agent
Install the MCP connector once — your agent loads the right skills, works through each phase, and routes to a licensed Luxembourg accountant for review.