B2B Accounting in Luxembourg: Invoicing, VAT and Reporting Obligations
Mickaël LOC
Chartered Accountant ·
B2B Accounting in Luxembourg: Invoicing, VAT and Reporting Obligations
B2B companies in Luxembourg must meet three major accounting obligations: issuing compliant invoices with all mandatory legal mentions, filing an intra-Community VIES return for each intra-EU B2B supply or service, and respecting a statutory payment period of 30 days (maximum 60 days by agreement). Non-compliance with these rules exposes you to VAT adjustments and late-payment penalties.
B2B invoicing: mandatory mentions
- Unique sequential invoice number
- Date of issue and date of service/delivery
- Identity and VAT number of the seller and the buyer
- Detailed description of products/services
- Net amount, VAT rate, VAT amount, and gross amount
- Payment terms and late-payment penalties
Intra-Community declarations (VIES)
Intra-Community supplies of goods and intra-EU B2B services must be declared in the intra-Community return (VIES), filed monthly or quarterly depending on volume. These transactions are exempt from VAT in Luxembourg if the buyer is a VAT-taxable person in another Member State.
Payment terms and provisions for doubtful receivables
Luxembourg law sets the statutory payment period between companies at 30 days from receipt of the invoice (maximum 60 days by contractual agreement). Doubtful receivables must be provisioned as soon as the risk of non-recovery is likely.
Is your B2B accounting fully compliant? Our experts manage your invoicing obligations, VIES returns, and monitoring of trade receivables.
Frequently Asked Questions
What mandatory information must appear on a B2B invoice in Luxembourg?
A Luxembourg B2B invoice must include: a unique sequential number, the issue and service dates, the identity and VAT number of the seller and buyer, a description of the goods/services, the net amounts, the VAT rate and amount, the gross amount, and payment terms including late payment penalties.
What is the VIES intra-community recapitulative statement?
The intra-community recapitulative statement (VIES) is a return that Luxembourg companies must file monthly (or quarterly depending on volume) with the AED, listing all B2B supplies of goods and services made to other EU Member States.
What is the statutory payment term between businesses in Luxembourg?
Luxembourg law sets the statutory payment term between businesses at 30 days from receipt of the invoice. Parties may contractually agree to a maximum term of 60 days. Beyond that, statutory late payment interest is due automatically.
How should doubtful receivables be provisioned in accounting?
A provision for doubtful receivables must be recognised as soon as the risk of non-recovery is probable and measurable. It reduces the value of the receivable on the balance sheet and is a tax-deductible expense if it is individualised and documented. Rigorous follow-up of reminders is essential.
Is electronic invoicing mandatory in Luxembourg?
Electronic invoicing has been mandatory for transactions with Luxembourg public entities (B2G) since 2020. For private B2B transactions, it is not yet mandatory in Luxembourg in 2026, but European regulatory developments (ViDA) are expected to extend it progressively.
