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By Benjamin DRAI, Partner, Indirect Tax Papa Saliou DIOP, Partner, Banking Capital Markets, Luxembourg Securitization Leader, EY Luxembourg
Over the last twenty years, Luxembourg has been an attractive hub for structured financing and securitization, developing a flexible regulatory and tax environment for operators of the financing sector.(1)
Context
In Luxembourg, the local VAT Law provides for the VAT exemption of:
- the granting and the negotiation of credit, the management of credit by the one having granted credit(2)
- all transactions — including negotiation — concerning receivables, however “debt collection” is expressly excluded from the scope of this VAT exemption(3)....
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