Agefi Luxembourg - mars 2025

Mars 2025 37 AGEFI Luxembourg Droit / Emploi Situation économique au 4 ème trimestre 2024 A près une année 2024mar- quée par de fortes perturba- tions, enparticulier dans le secteur de la construction, les pers- pectives économiques pour l’Arti- sanat demeurent préoccupantes. Même si certains signes d’améliora- tion se profilent à l’horizon 2025- 2026, le secteur continue de faire face à des défis significatifs, notam- ment à une faible demande et à une baisse de l’emploi, avec de fortes disparités persistantes entre les dif- férents secteurs d’activités. Le relâ- chement progressif des conditions monétaires et une inflationmoins importante que prévue offrent un contexte plus favorable,mais les ef- fets positifs sur lemarché du travail se font encore attendre. La Chambre des Métiers appelle à un renforcement de l’approche contracy- clique au niveau des appels d’offres pu- blics et à une adaptation des conditions bancaires suiteaurelâchement progressif des politiquesmonétaires de la BCE, ceci afin de stabiliser le secteur et d’atténuer les impacts négatifs sur l’emploi et l’éco- nomie. Les résultats dudernier trimestre 2024 de l’enquête conjoncturelle de la Chambre des Métiers confirment que l’indicateur d’activité dans le secteur de l’Artisanat a atteint son point le plus bas au deuxième trimestre de cette même année. Bien que l’indicateur montre une stagnationauquatrièmetrimestre,ilreste bien en dessous de la moyenne décen- nale, soulignant la persistance des diffi- cultés. Les signaux pour les prochains trimestres restent également contrastés. Par ailleurs, le nombre de radiations dans l’Artisanat (faillites et arrêts volontaires d’activités) a atteint un niveau record en 2024, démontrant une fragilisation gran- dissante du secteur. Unmarché du logement neuf qui peine à se relancer Bienquelemarchéimmobiliermontredes signes de reprise, portés par l’augmenta- tion des crédits hypothécaires et la baisse progressivedestauxd’intérêt,cettereprise des ventes immobilières porte principale- mentsurlesappartementsexistantsetnon sur les nouvelles constructions (VEFA). Lesecteurdelaconstruction,piliermajeur del’Artisanat,restedèslorsprofondément affecté.Lesentrepreneursdeconstruction fontfaceàunepénuriedelademandepri- véequin’estpascompenséparunehausse appropriéedessoumissionspubliques.En conséquence, le secteur enregistre une baisse ininterrompue de l’emploi depuis fin2022,impactantsignificativementlare- prise du rythme de production de loge- ments àmoyen terme. Les mesures gouvernementales prises à bon escient pour stimuler la reprise des ventes de VEFA commencent tout juste à porter leurs fruits, les promoteurs signa- lant un certain regain d’intérêt de la part des clients potentiels. Or, c’est encore sou- vent le financement qui fait défaut. Dans ce contexte, il appartient aux organismes bancairesdejouerleurpartdanslarelance desactivitésdusecteurdelaconstruction, en reflétant plus justement la baisse des taux suite au relâchement progressif des politiques monétaires ainsi qu’en accep- tantplusdedossiers.Parailleurs,laCham- bredesMétiersencouragelespromoteurs immobiliersd’avoirrecoursauSPVProlog Luxembourg SA suite à l’abaissement du seuil de prévente requis de 50%à 30%. Des investissements publics nécessaires pour soutenir le secteur de la construction SuiteàlapublicationduconjonctureFlash duSTATEC,annonçantunehaussedesre- crutementsdans le secteurde la construc- tion, la Chambre des Métiers estime qu’il convient d’interpréter cette information avec prudence. Même si cette augmenta- tiondesembauchespeutsemblerpositive àpremièrevue,ellepeutêtrepurementar- tificiellesiplusieurssalariéspassentd’une entreprise à l’autre. L’indicateur à surveil- ler est le nombre de salariés actifs dans le secteur de la construction, et selon le STA- TEC, il continue de reculer au quatrième trimestre 2024. Cette baisse continue d’être au centre des préoccupations du secteur. Depuis le pic de51.872salariésatteintauderniertrimes- tre2022,lenombred’emploissalariésdans le secteur n’a cessé de chuter, avec une nouvelle baisse annuelle de 5.3%enregis- trée pour l’année 2024. Cette perte conti- nue de salariés risque de freiner la reprise du rythme de production de logements à moyenterme,lorsquelesconditionsdefi- nancement et d’accès au crédit se seront améliorées et que la demande de loge- mentsmarquera son retour. En cas de re- prise, cette perte de vitesse est susceptible deprovoquerunenouvellecontractionde l’offre, renforçant davantage le problème structurel auquel se retrouve confronté le pays depuis plusieurs années dans le sec- teur du logement. La pénurie actuelle de la demande privée n’est pas accompagnée par unniveau ap- proprié de soumissions publiques dans certainsmétiersdelaconstructionmenant àunesituationconcurrentiellemalsaineau niveau des marchés publics. Dans ce contexte, la Chambre des Métiers recom- mande d’augmenter significativement l’enveloppebudgétairedédiéeàlacrisedu logement,quecesoitàtraversl’acquisition de VEFA supplémentaires sur le marché privé,lelancementdenouvellesconstruc- tions de logements par le biais de promo- teurs publics ou encore le recours à des modèles innovants de construction de lo- gements abordables enPPP. Une externalisation de la préparation des dossiersdesoumissionsdevraitpermettre d’engager plus rapidement les investisse- mentspublicsprévuscequipermettraitde stimulerlademandeetdesoutenirainsila reprise du secteur de la constructiondans une logique anticyclique. Ces investisse- ments publics sont nécessaires afin de maintenir le personnel du secteur de la constructiondansl’emploi,maisaussiafin d’atténuer àmoyen terme le problème de la pénurie de logements. Source :ChambredesMétiers Une situation toujours préoccupante pour l’Artisanat en 2025 4*56"5*0/ &$0/0.*26& BV F USJNFTUSF 1 UBLIÉLE 6OF TJUVBUJPO UPVKPVST QSÏPDDVQBOUF I n the realmof international taxation, transfer pricing (TP) and value added tax (VAT) are two pivotal components that often intersect in complexways. Un- derstanding their interplay is crucial for businesses operating across borders, parti- cularly in the context of compliance and tax optimization. The pending case of SC Arcomet Towercranes SRL (ARO) under- scores the intricate complexities surrounding TP and VAT, illus- trating the challenges busi- nesses face in complying with different tax regulations. Context: TheArcomet caseC-726/23 pending before the Court of Justice of theEuropeanUnion (CJEU) dealswith VAT issues related to transfer pricingwithin corporategroups.ArcometTowercranesSRL,aRo- maniansubsidiary,receivedinvoicesfromitsBelgianparent company, Arcomet Service NV, to align profits according toOECDguidelines.TheRomaniantaxauthoritiesclassi- fiedtheseinvoicesaspaymentsforservicesandappliedVAT through the reverse chargemechanism, but theydenied the subsidiary’s right to deduct this VAT due to a lack of proof of actual services provided. The parent company of the multinational Arcomet Group seeks suppliers for ARO (as well as for the other Group companies) and negotiates contractual terms with these suppliers. The contractual relation- shipwithsuppliersandendcustomersisthenentered into by the ARO (or another Group company). As a resultofthecomparabilityanalysisconductedwithin the scope of a transfer pricing study, it was assessed that the associatedentities should recorda specific fi- nancial result at market level (operating profit mar- gin).Thefindingsofthestudywereincorporatedinto a contract by which the parties assumed the respon- sibilities and risks for selling/purchasing and renting cranes. The contract provided for an equalization in- voice to be issued eachyear. Thecasethuscentersoninterpretingprovisionsofthe Council Directive 2006/112/EC concerning the com- mon systemof VATon two critical issues: 1.Whetheramountsinvoicedbetweenaffiliatedcom- paniestoalignprofits,followingOECDTransferPric- ing Guidelines, constitute payments for VAT-taxable services. 2.Iftaxauthoritiescanmandateadditionaldocumen- tation, beyond invoices, to substantiate VAT deduc- tions related to procured services for the taxable person’s economic activities. TherelationshipbetweenTPandVATismultifaceted, involving numerous regulatory guidelines andprin- ciples. While in general the taxable basis for VAT should be equal to the consideration paid (Article 2(1)(c) of the VAT Directive confirmed by various CJEUcaselawsee, interalia ,CaseC-16/93Tolsmaand C-285/10, Campsa Estaciones de Servicio SA), some exceptions to this rule exist. TheVATDirective,forinstance,includesmeasuresto prevent tax evasionor avoidance anddefines taxable amounts based on the open market value and the arm’s lengthprinciple inArticle80of theEUVATDi- rective.Theprinciplesinthisarticleensurethat,under certain conditions, transactions between related par- ties are conductedas if theywerebetween independ- ent entities, thereby maintaining fair market conditions. It has nonetheless beenestablishedby the CJEU that the conditions of application of Article 80 oftheVATDirectiveareexhaustiveand,consequently, national legislation cannot foresee that the taxable basisshouldbeopenmarketvalueincasesotherthan thoselisted(CJEUJoinedCasesC-621/10andC-129/11 Balkan andSea Properties). With the aimto strengthen its legislative frameworks to address the increasing concern of VAT fraud, the Luxembourg government introduced the EUprinci- ples in Article 28 3) of the Luxembourg VAT law in August 2018. The Luxembourg measures would only apply to transactionstakingplacebetweenrelatedpartieswith familiar or other close personal ties (including when theyhavemanagement, ownership,membership, fi- nancial or legal links) and if one of the parties would have a limited input VAT recovery right. It is also im- portant to note that the anti-avoidance rule would apply to both local and cross border supplies. When a transaction fallswithin one of the above sce- narios, the consideration (price) of the supply (good orservice)wouldbeeithertheopenmarketvaluethat wouldbe applicable under conditions of fair compe- tition for comparable supplies, or the cost price of the goodsorthefullcostsincurredbythesuppliertosup- ply the service. From a VAT perspective, TP adjustments can thus havesignificantimplications.Whentaxauthoritiesas- sessanincreaseintaxableprofitsfollowingaTPaudit, businessesmustconsiderthecorrespondingVATad- justments. This is particularly relevant for companies in the financial services industry, which often provide VAT-exempt services. ThesecompaniescannotclaimbackVAT incurred on goods and services pur- chasedtocarryouttheiractivities,mak- ingVAT a final cost. Entities within the same group or those with economic ties, often referred to as “related parties,” frequently provide administrative or support services to each other. VAT is applicable totheseservices,andif the related parties cannot fully claim back VAT on their costs, this makes the VAT the final cost. To mitigate this, related parties may adjust the prices of their servicescomparedtomarketprices. However,suchadjustmentscanbechallengeableand questionable if they aimto reduceVAT costs. AnessentialaspectofmanagingTPandVATcompli- ance is thus maintaining thorough and well-docu- mented TP documentation. Proper TP documentation ensures that intercompany transac- tions are appropriately justified and aligned with OECD guidelines. When tax authorities reviewVAT deductions or assess additional VAT liabilities, they often do so in lack of substantiating evidence that transactions were carried out at arm’s length and for legitimate business purposes respectively due to in- consistencies between the TP documentation and Intra-Group Service Agreements signed. Failure to provide adequate TP documentation may thus lead totaxdisputes,VATreassessments,orevenpenalties. Emphasis should be placed on the importance of thorough documentation of cross-border relation- ships between all group companies. While VAT is generally harmonized within the EU, VAT authori- ties across Europe adhere to their respective State’s internal guidelines regarding transfer pricing and VAT audit approaches. As demonstrated by theArcomet case, tax authori- ties may scrutinize TP adjustments and consider themasVAT-taxabletransactions,reinforcingthene- cessity for businesses tomaintaindetailedand trans- parent documentation that supports their TP positions andVAT treatment. Guidance tonavigate the complex interplaybetween VAT and TP can be found in the VAT Expert Group (VEG) Discussion Paper NO 071 REV2. Therein the VEGprovidedsomeseeminglyclearguidanceonthe VAT treatment of TP adjustments focusing on their nature and link to supplies. While in the said Paper, contracts defining adjustments to reach guaranteed profitmarginsareclearlyconsideredasfallingoutside the scope, the Arcomet case adds the nuance of the partiesassumingtheresponsibilitiesandrisksforsell- ing/purchasingandrentingcranes asper the contract concluded further to the TP Study. The latterwas in- terpretedbytherespectivetaxauthoritiesasconstitut- inga supplyof service and thus theTPadjustment to fallwithin the scope of VAT. TheArcomet case raises the question of whether, and to what extent, input VATdeductionsfortransferpricingadjustmentsneed to be supportedbydocumentationbeyond invoices. Thisdocumentationisnecessarytodemonstratethat the costs from these adjustments are related to the company’s economic activities. The input VAT deduction is a fundamental right of the VAT mechanismwhich was emphasized by the VEGinitsDiscussionPaperandthustheVEGwould not expect any non-deductible VAT to occur further to a TP adjustment. The said paper however focuses on VAT resulting from adjusted invoices i.e., such cases where further to a TP adjustment the taxable basisofanalreadyexistingsupplyofgoodsorservices is adjusted and thus in principle the original invoices would require to be redacted. Consequently, the sce- nario in which further to a TP study an Intra-Group Agreementisconcludedandfurthertothisagreement the VAT authorities consider an independent supply of service to be executed between the group compa- nies, has not been discussed by the VEG. Such sce- nariowas omitted fromthe paper. Predominantly as inaccordancewithitsargumentstheVEGwouldnot deem a TP adjustment to give raise to an individual supply of service followingwithin the scope of VAT. ItthereforeremainstobeanalyzedbytheCJEUinthe Arcomet case whether and if so to which extent the existenceofanintra-groupagreementrespectivelyin- voice aiming to represent a TP adjustment further to aTPstudycouldorshouldbeinterpretedasasupply of services against remuneration and if so whether any input VAT resulting from such TP adjustment wouldbe deductible. WhilethehearingintheArcometcaseonlytookplace recently,thejudgementlaterthisyearisthusexpected to clarify the specific case but also to provide more general guidance in the interpretation of the Paper of theVEG(opinionoftheAdvocateGeneralRichardde la Tour scheduled forApril 3, 2025). Finally, in conclusion of the above, the interplay be- tweenTP andVAT is a complex but crucial aspect of internationaltaxation.Businessesmustnavigatethese intricacies to ensure compliance and optimize their taxpositions.Asgovernmentscontinuetostrengthen theirlegislativeframeworkstocombattaxavoidance and fraud, staying informed about these develop- mentsisessentialforbusinessesoperatinginmultiple jurisdictions. Understanding the principles and guidelines governing TP and VAT can help busi- nesses make informed decisions and maintain fair market practices. Rebecca OBERMAHR, Partner, Indirect Tax Eduardo J MEDINA, Partner, Consumer Products and Services and Transfer Pricing EY Luxembourg The Complex Interplay Between Transfer Pricing and VAT