The Neutrality of VAT and the Refund Procedure in Luxembourg

For businesses, one of the important aspects of the neutrality of the VAT system is that the VAT itself must not constitute a burden on them. In this article, the author discusses the effect of VAT-related administrative obligations and procedures on the neutrality of VAT and the fact that, although the formal legislation in Luxembourg complies with the principle of neutrality, there can be doubt whether that conclusion also applies to the administrative procedure for refunding excess input VAT.