Luxembourg VAT Rates 2026

Luxembourg VAT Rates at a Glance

What is VAT Called in Luxembourg?

In Luxembourg, value added tax is officially known as Taxe sur la Valeur Ajoutée (TVA). It is administered by the Administration de l'enregistrement, des domaines et de la TVA (AED).

Like all EU member states, Luxembourg operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Administration de l'enregistrement, des domaines et de la TVA is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Luxembourg (8%)

Luxembourg applies a reduced VAT rate of 8% to the following categories of goods and services (subject to the specific conditions of Luxembourg VAT law):

• ✓Food and non-alcoholic beverages
• ✓Hotel accommodation
• ✓Books and periodicals
• ✓Pharmaceutical products
• ✓Passenger transport
• ✓Cultural events and museums
• ✓Sport events

Additionally, Luxembourg applies a super-reduced rate of 3% to:

• ✓Food and beverages for human consumption
• ✓Non-alcoholic beverages
• ✓Pharmaceutical products
• ✓Certain electronic publications
• ✓Natural gas and heating (temporarily)

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Luxembourg VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Luxembourg

Once registered, businesses are issued a Luxembourg VAT number (LU + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Luxembourg VAT with no registration threshold — the first taxable supply in Luxembourg triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Luxembourg

VAT returns in Luxembourg must be submitted electronically via the Administration de l'enregistrement, des domaines et de la TVA portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Luxembourg requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Luxembourg

To be valid for VAT recovery purposes, Luxembourg VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier name, address and Luxembourg VAT number (LU + 8 digits)
2. 2Customer name, address and VAT number (B2B)
3. 3Date of issue and date of supply
4. 4Sequential invoice number
5. 5Description of goods/services
6. 6Net amount, TVA rate and TVA amount
7. 7Total amount payable

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Luxembourg's national rules on simplified invoicing.

Reverse Charge Mechanism in Luxembourg

Luxembourg applies reverse charge to B2B services from abroad, construction services, and supplies of immovable property where the seller has opted to tax.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Luxembourg VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Luxembourg

Luxembourg was historically the preferred OSS / MOSS registration country for major digital companies due to its administrative simplicity. Many large tech firms still have their EU OSS registration in Luxembourg.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Luxembourg (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Luxembourg VAT due on your OSS return is paid in your registration country and forwarded to Luxembourg's Administration de l'enregistrement, des domaines et de la TVA.

Luxembourg VAT: Background & History

Luxembourg has the EU's lowest standard VAT rate at 17% and a "super-reduced" rate of 3% — the EU minimum — on essential goods. Luxembourg famously used its low VAT rates to attract digital services companies between 2003 and 2015; Amazon, Apple Music, Spotify, and many others registered their EU B2C operations in Luxembourg to benefit from the low rate. This ended with the 2015 "place of supply" reform that moved digital services taxation to the consumer's country. Luxembourg is the smallest EU economy by GDP but punches above its weight in financial services, creating complex VAT issues in the fund and banking sectors.

Practical VAT Compliance Tips for Luxembourg

Frequently Asked Questions — Luxembourg VAT

Luxembourg VAT Tools