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This guide provides an overview of VAT (Value Added Tax) in Luxembourg, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaging in transactions within Luxembourg or with Luxembourgish customers.
Luxembourg’s VAT system, governed by the Luxembourg VAT Law of February 12, 1979, aligns with the EU VAT Directive. VAT is applicable on most goods and services within Luxembourg, as well as on imports.
Euro (€)
LU followed by 8 digits (e.g., LU12345678)
Yes, required for non-EU businesses conducting taxable activities.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
|---|---|---|
| 17% | Standard Rate | Applies to most goods and services |
| 14% | Reduced Rate | Applies to some types of wine, certain types of fuel and other means of energy, advertising brochures and management and custody of credit guarantees, among others. |
| 8% | Reduced Rate | Applies to certain utilities and goods |
| 3% | Reduced Rate | Applies to essential goods like foodstuffs and books |
| 0% | Zero Rate | Applies to specific exports and intra-community supplies |
| Business Type | VAT Registration Threshold |
|---|---|
| Resident Businesses | EUR 35,000 per annum |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in Luxembourg |
| Frequency | Filing Deadline | Payment Deadline |
|---|---|---|
| Monthly and annual | 15th day of the following month | 15th day of the following month |
| Quarterly and annual | 15th day of the month following the quarter
Annually: before 1 May of the following year |
15th day of the month following the quarter
Annually: before 1 May of the following year |
| Annual | March 1 of the following year | March 1 of the following year |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 17% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Luxembourg applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.
E-invoicing is encouraged but not mandatory for private sector businesses in Luxembourg. For transactions with the public sector, e-invoices are required in compliance with EU standards and exchanged via the Peppol network.
Luxembourg mandates digital reporting of VAT-related transactions for businesses using electronic systems approved by the Luxembourg tax authorities.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Luxembourg VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
