Fleet Handbook Luxembourg

• Full Operational Lease
• Operating Lease
• Fleet Management
• Sale and Leaseback
• AlphaElectric
• AlphaGuide

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.

• Minimum: 12 months/no minimum mileage
• Maximum: 60 months/120.000 km (petrol)
• Maximum: 60 months/180.000 km (diesel)

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.

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

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

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.

Documents required to register a vehicle in Luxembourg:

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

The vehicle registration process takes approximately one working day.

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.

• Registration tax
  There is no registration tax in Luxembourg.
• Road tax
  Also known as 'CO_²Tax' is based on the cylinder capacity and the CO_² 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

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.

There are two methods for assessing the benefit in kind.

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

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.

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