FAIA - New obligations about VAT

1.General overview

What is FAIA?

• The FAIA file (“Fichier Audit Informatisé de l’Administration de l’Enregistrement et des Domaines”) is a computer file containing all necessary information for a VAT audit.

• VAT Taxable entities will have to adapt their accounting software or to acquire a new one in order to be able to supply all information requested under the specific format.

When have I to supply a FAIA file ?

• You do not have to submit a FAIA file in the same time than you submit your VAT return. It is only in case of control, if the tax authorities are requesting the FAIA file, you will have to do submit.

Who is concerned by FAIA ?

• The “Administration de l’Enregistrement et des Domaines” (AED) has decided to introduce the FAIA in two steps. The first step has to be operational for the 2012 accounting year. There is still not a deadline for the implementation of the second step.

2.In Practise

VGD Luxembourg is in charge of the accounting

• If we are in charge of the accounting of a company, we also manage the creation of the FAIA file for each end of accounting period. We will contact the company if some information are missing.

VGD Luxembourg is not in charge of the accounting

• The company has to manage one FAIA file per accounting period. This file has to respect the Luxembourg Standardized Chart of Accounts as well as Luxembourg legislation.
• In order to be able to supply the right file, ask to your computer engineer who could do the necessary updates on your accounting software.

3.Archiving and modification

• Accounting and FAIA information have to be archived in a sustainable and legibly way for a 10 years period.

• A VAT return deposited may be rectified with a correcting return. Modifications betwen both VAT return have to be traceable in accounting entries thanks to reversals according accounting rules. To delete or to modificate accounting entries in a computer accountability is not allowed.