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Fleet Handbook Luxembourg

lux-products
Products
  • Full Operational Lease
  • Operating Lease
  • Fleet Management
  • Sale and Leaseback
  • AlphaElectric
  • AlphaGuide
Services

Service, maintenance and repairs, tyre management (incl. winter tyres), insurance, accident management, roadside assistance (ACL), replacement vehicles, pre-contract vehicles, daily rentals, road tax, vehicle-related fees, fine management, fuel management, fleet consultancy, reporting, outsourcing, etc.

Term and mileage for Operating Lease
  • Minimum: 12 months/no minimum mileage
  • Maximum: 60 months/120.000 km (petrol)
  • Maximum: 60 months/180.000 km (diesel)
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Title

Vehicles under financial rental and operational lease are registered in the name of Alphabet Luxembourg. Alphabet is responsible for administration and registration in this case.
Registration and technical inspection of road vehicles were introduced by the Act of 14 February 1955, regarding the regulation of traffic on all roads.
The state has entrusted the ‘Société nationale de contrôle technique’ (SNCT) with the organisation of registration numbers, the technical control of vehicles and the establishment and the use of a computerised system to manage the national database for vehicles and their owners and drivers.

Transfer of title

We only accept cars from official dealers abroad or local with less than 15.000 km and less than one year. To transfer the title of a vehicle previously registered in Luxembourg or abroad, the following is required:

  • Vehicle registration document
  • Vehicle purchase invoice
Personal plates

In Luxembourg it is possible to ask the SNCT for a personal and customised plate. It is only necessary to pay a basic tax of €50,00. There is a choice of five digits or two letters and four digits. For instance : 12354 or AL1234

Transfer of plate

Plate numbers are personal in Luxembourg. This means that when you sell your car, the licence plate remains your property. A private person entitled to a leasing car can transfer their personal plate to their company car.
A termination document (document de cessation) is submitted to the SNCT, and the new leasing company car is equipped with the personal plate.

Required documentation

Documents required to register a vehicle in Luxembourg:

  • Invoice
  • Fiscal certificate ('vignette fiscale')
  • Chancery stamp ('timbre de Chancellerie')
  • Customs document
  • VAT number
Time frame

The vehicle registration process takes approximately one working day.

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VAT rate

The current VAT rate is 17%.

A lease agreement (financial or operational) is subject to VAT. Therefore, financing costs must be included in the taxable portion of the lease for VAT purposes.

Other vehicle-related taxes and fees
  • Registration tax
    There is no registration tax in Luxembourg.
  • Road tax
    Also known as 'CO2Tax' is based on the cylinder capacity and the CO2 emissions of the car

    Example:
     
    BMW 518d 2.0d 190 hp
    (119 g CO2 emissions)
    €84,96 / year
    BMW 116d 1.5d 116hp
    (111 g CO2 emissions)
    €78,96 / year
Tax refunding

Lessees who are eligible to claim back the VAT can recover 100% of the VAT on the monthly lease for passengers cars or commercial vehicles.

lux-company-car

There are two methods for assessing the benefit in kind.

The standard method:

The fringe benefit is assessed at 1,5% per month of the net value of the vehicle (options + VAT, minus seller rebate).

Example:
 
Purchase price of the vehicle (including VAT and options, minus the discount granted by the seller): €29.000,00
Monthly taxable fringe benefit:
1,5% x €29.000,00
€435,00

 

The logbook method:

The employee keeps a diary that includes the number of kilometres travelled on private trips (including travel between home and the workplace). The amount of the taxable benefit is the amount of kilometres travelled multiplied by the cost of the vehicle per kilometre. In the absence of real value, the cost of the vehicle is generally estimated at €0,40 per kilometre. The countdown is on a monthly basis.

Both methods are subject to withholding tax on wages and social security contributions based on income from an employment activity.

lux-contact

Alphabet Luxembourg SA
2-4 rue du Château d’Eau
L-3364 Leudelange
Luxembourg

 

Phone: +352 250009
Fax: +352 250009300
Email: info@alphabet.lu

 

Latest update: September 2018​​​​​​​