The three stages
They follow in this order, and skipping the first makes the next inadmissible. The remedies are tiered.
A complaint to the competent tax office of the administration, against the decision of refusal.
Referral to the director of the administration, which occurs where the complaint is rejected in whole or in part. The director re-examines the file and confirms or corrects.
A judicial appeal against the director's decision, within three months of receiving that decision.
The director's decision is notified by registered post, which fixes the starting point of the period.
| Step | What it involves | Time limit |
|---|---|---|
| Request for reconsideration | Asking the administration to review | Short, from notification |
| Hierarchical appeal | Referring to the higher authority | Short, from notification |
| Judicial review | Referring to the competent court | Set by the texts |
The competent court
This is the most surprising point, and it is decisive. The appeal periods are short and run from notification.
An appeal against a director's decision on value added tax is brought before the district court of Luxembourg, sitting in civil matters.
It is therefore not an administrative court, contrary to what the tax nature of the dispute might suggest.
This feature stems from the Luxembourg allocation of jurisdiction, which distributes tax litigation between two branches according to subject matter.
Choosing the wrong court loses the deadline, which continues to run during proceedings wrongly commenced.
The appeal is brought by summons, served on the director of the administration within the period allowed.
The effect of the administration's silence
A useful rule where a file is not progressing. Silence from the administration may count as a decision.
Where a complaint remains unanswered for six months, it is deemed rejected.
The applicant may then seise the competent court, without awaiting a decision that may never come.
This rule prevents deadlock, but it presupposes tracking the timetable of one's own complaint.
A file left unmonitored may therefore lapse, not through a decision but through the passage of time.
The deadlines not to miss
Three deadlines, all mandatory.
The period for complaint against the initial decision, to the tax office.
The six-month period at the end of which silence amounts to rejection.
The three-month period for the judicial appeal, from notification of the director's decision.
An important point on calculation: where the period has already begun to run before an intermediate stage, the time elapsed is counted. The applicant does not therefore always have the full period.
What can be tried first
Two steps, before commencing proceedings. They consist in asking for the reasons and completing the file.
Contact the office that handled the file, to understand the ground of refusal and obtain a correction if appropriate.
Complete the file, where the refusal turns on a missing document or an insufficient description of the works.
Many refusals turn on an incomplete file rather than substantive ineligibility, which often makes this step more effective than litigation.
What this means for a professional
Four rules.
Identify the exact ground of refusal before contemplating a challenge.
Respect the order of stages, the prior complaint conditioning the admissibility of the appeal.
Point out that the competent court is civil and not administrative on value added tax.
Refer to a legal professional for the judicial stage, which follows a strict formalism.
This article reflects the state of the schemes at the date of checking and serves professional orientation. It does not replace legal advice or consultation of the competent administration.