FAIA - e-VAT audits in Luxembourg

The Luxembourg VAT law allows the VAT Authorities to carry out dematerialised VAT audits.

At the end of 2009, the Luxembourg VAT Authorities published on their website a first recommendation about the implementation of the "Fichier d'audit informatisé AED" (FAIA) designed to carry out efficient dematerialised VAT audits.

The FAIA is designed to be a standard file. It is an interface between the systems of taxable persons and the systems used by the VAT Authorities for performing audits. It takes the form of a structured file through which information on the business is exported from the systems of the taxable person. This file is based on the Standard Audit File for Tax (SAF-T) developed at the OECD level.  

Luxembourg VAT Authorities published a second recommendation, taking into account observations and questions raised from businesses working in collaboration with PwC. This new guidance paper essentially introduced categories of businesses exempt to meet the FAIA requirements, for the time being.

The VAT authorities also published the list of fields (obligatory and facultative) on their website on October 2011 (FAIA version 2.0).

On February 2013, the VAT authorities have communicated a new recommendation concerning FAIA and added FAQs.

The introduction of the FAIA clearly intends to bring VAT audits in Luxembourg to a new era. Businesses which already need to comply with these new requirements must perform a first assessment of their systems, processes and organisation as a matter of priority. This is needed in order to determine how complex the introduction of the FAIA is for them and to define the level of budget that is needed to manage this mandatory change.

Please take note that the FAIA may be requested to verify VAT returns relating to 2011 and following years. The applicability of the rules to your company / companies may change from one year to another (e.g. the periodicity of the filing is one of the criteria).

Click here to test if the FAIA applies to you.

How can PwC help?

PwC Luxembourg has brought together a dedicated team of accounting, IT and VAT experts to help you understand your obligations in respect of FAIA and implement the new requirements. Our assistance is always customised to your specific needs and can consist of one or more of the following services:

  • Assessing the impact of the new requirements from an accounting and VAT standpoint;
  • Reviewing the company's IT environment and data available in the systems with regard to the data requested;
  • Reviewing the way in which transactions are booked from a VAT standpoint;
  • Reviewing the company's internal control processes relating to accounting;
  • Identify the best extraction and consolidation strategy from the different financial and operational systems;
  • For internally developed solutions:
    • Provide assistance to generate the FAIA files
    • Validate the format of the FAIA files
    • Validate the content and VAT-compliance of the FAIA files
  • For external solutions:
    • Define and implement an efficient reporting solution