E-invoicing mandates are just one part of a wider set of initiatives which curtail the VAT gap, which is the projected VAT revenue generated, compared to the actual VAT collected.

Another mechanism that countries utililse to accomplish a similar objective is the application of the reverse charge, which shifts the burden of paying VAT on the buyer, rather than the supplier, thus reducing the likelihood of VAT fraud.

Luxembourg has now introduced the reverse charge mechanism in respect of B2B sales of specific products, including:

• Mobile phones
• Tablets
• Other high-value goods.

The reverse charge comes with a caveat, where transactions must exceed 10,000 Euros for the mechanism to apply.

The reverse charge will apply from 1 January 2024.