VAT Luxembourg 2024

VAT Rates in Luxembourg

In Luxembourg, there is one standard and four reduced VAT rates:

• 17% – The standard VAT rate in Luxembourg, covers all products and services not included in the reduced rates of 14%, 8%, 3%, and 0%.
• 14% – The first reduced VAT rate.
• 8% – The second reduced VAT rate.
• 3% – The super reduced VAT rate.
• 0% – The zero VAT rate.

Reduced VAT Rates in Luxembourg in 2023

In October 2022, Luxembourg authorities passed the “Solidaritéitspak 2.0”, which serves as a tool to mitigate the effects of inflation. As a result, from January 1 to December 31, 2023, VAT rates in Luxembourg were temporarily reduced by one percentage point. Consequently, they were 16%, 13%, and 7%, respectively.

14% VAT Luxembourg

The first of the reduced VAT rates in Luxembourg applies to:

• selected wines,
• solid fossil fuels,
• mineral oils,
• laundry and cleaning products,
• printed advertising materials.

8% VAT Luxembourg

The second reduced VAT rate in Luxembourg applies to:

• household cleaning,
• minor repairs,
• hairdressing services,
• district heating,
• natural gas, electricity, firewood, LPG,
• cut flowers and ornamental plants,
• selected works of art and antiques.

3% VAT Luxembourg

In Luxembourg, there is also a super reduced VAT rate of 3%, which applies to:

• food products,
• children’s articles,
• books, e-books, and magazines,
• tickets for cultural events,
• agricultural products (excluding pesticides),
• selected pharmaceutical products,
• medical equipment for the disabled.

0% VAT Luxembourg

The zero VAT rate in Luxembourg applies to intra-community and international transport.

When is VAT registration necessary in Luxembourg?

In Luxembourg, VAT registration is required when conducting business activities within Luxembourg, meaning intra-community acquisition or supply of goods, storing products, making sales, warehouse transfers, or exporting outside the European Union.

Moreover, as Luxembourg is part of the European Union, the obligation to register for VAT arises when exceeding the limit for distance sales, which is 10,000 Euros.

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VAT Registration in Luxembourg

VAT registration in Luxembourg is conducted at the Administration de l’enregistrement, des domaines et de la TVA, which translates as the Registration, Domains and VAT Administration, known in this country as Taxe sur la valeur ajoutée. Applications can be submitted online through the AED website or in person at the office headquarters.

Administration de l’enregistrement, des domaines et de la TVA,

1-3 avenue Guillaume, L-1651 Luxembourg,

www.aed.public.lu,

info@aed.public.lu.

Luxembourg VAT return deadline

In Luxembourg, tax obligations also require entrepreneurs to submit declarations. This can be done on a monthly, quarterly, or annual basis, depending on the company’s revenue.

1. Annual VAT declarations should be submitted by March 1 of the year following the accounting period. This applies to companies with a turnover below 112,000 EUR.
2. Quarterly and annual VAT declarations: should be submitted before the 15th day of the quarter following the accounting period, and annually before May 1 of the year following the accounting period. This applies to companies with a turnover above 112,000 EUR but below 620,000 EUR.
3. Monthly and annual VAT declarations: should be submitted before the 15th day of the month following the accounting period, and annually before May 1 of the year following the accounting period. This applies to companies with a turnover above 620,000 EUR.

VAT declarations for the purpose of VAT in Luxembourg are submitted via the website of the aforementioned office AED.

Data on the Luxembourg VAT Invoice

In the case of VAT invoices in Luxembourg, issuers should include the following data on these documents:

• Invoice number,
• Details of the sellers and buyers,
• Dates of issuance and delivery of goods,
• Applied VAT rates,
• Information about the goods and services: description, quantity, weight, net amount, VAT amount, gross amount,
• Currency,
• Exchange rate.

Intrastat Luxembourg

It’s important to remember that in Luxembourg, as a member state of the European Union, apart from VAT registration or declarations, it is also necessary to report to Intrastat, the EU statistical system. This reporting aims to record intra-community transactions, facilitating the analysis of information concerning trade in goods between EU countries.

In the case of Luxembourg, the thresholds beyond which the obligation to report Intrastat arises are: EUR 250,000 for the import (arrival) of goods, and EUR 200,000 for the export (dispatch).

If you are interested in Intrastat thresholds in other EU countries, check our article – Intrastat thresholds 2024.

Luxembourg VAT 2024 - Summary

The VAT in Luxembourg is the lowest in the entire EU. However, this does not change the fact that proper accounting and timely submission of declarations, preceded by registration, which can be done by submitting an application at the Administration de l’enregistrement, des domaines et de la TVA, must be maintained.

Luxembourg VAT applies to most goods and services, however, they may be subject to four different rates that apply in the country. Meanwhile, the zero rate in Luxembourg qualifies services related to international and intra-community transport.

If you want to learn more about VAT in other EU countries, check out our articles about Belgium, Bulgaria, Hungary, Portugal, Estonia, Finland, Romania, Cyprus, or check out what VAT rates apply in the European Union countries in 2024. Also, find out what Incoterms 2020 are, and how to register for VAT in Austria, the Czech Republic, France, Spain, Germany, the United Kingdom, and Italy.

If you are planning or are already selling goods to other EU or UK countries and need help with registrations, settlements, or VAT declarations or VAT OSS, we are happy to assist you! Schedule a consultation with us and find out exactly what our VAT Compliance specialists can do for you.