Luxembourgian VAT rates and VAT compliance

As an EU member state, Luxembourg follows EU rules on value added tax (VAT) compliance. Luxembourg VAT is administered by the Administration de l’enregistrement, des domaines et de la TVA (AED).

Luxembourg applies a standard VAT rate, alongside reduced and super-reduced rates and zero-rating for specific goods and services.

VAT-registered businesses in Luxembourg must apply the correct VAT rate to taxable supplies and remit the tax to the AED by submitting periodic VAT returns.

Some supplies are exempt from VAT in Luxembourg. These commonly include:

• Certain financial and insurance services
• Healthcare and medical services
• Education and vocational training
• Certain cultural and non-profit activities
• Residential rental of immovable property

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT number is required for businesses carrying out taxable activities in Luxembourg.

Luxembourg-established businesses must register for VAT once annual taxable turnover exceeds EUR 35,000. Below this threshold, businesses may benefit from the small undertaking exemption regime, unless they opt to register voluntarily.

Non-established (foreign) businesses making taxable supplies in Luxembourg must generally register for VAT from the first taxable supply, unless the reverse charge mechanism fully applies. There is no turnover threshold for nonresidents.

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of EUR 10,000 applies. Once exceeded, Luxembourg VAT must be charged, or the supplier may elect to use the OSS scheme.

Get more information on VAT registration in Luxembourg.

VAT-registered businesses in Luxembourg must file periodic VAT returns. Filing frequency depends on turnover:

• Monthly:  Generally applies where annual turnover exceeds EUR 620,000.
• Quarterly: Generally applies where annual turnover is between EUR 112,000 and EUR 620,000.
• Annual: May apply where annual turnover does not exceed EUR 112,000.

Returns include output VAT on sales and recoverable input VAT on purchases.

In addition to VAT returns, businesses may also be required to submit:

• EC Sales Lists (EU Sales Lists)
• Intrastat declarations (for intra-EU goods movements above thresholds)

All filings are submitted electronically through the AED’s eTVA platform.

Get more information on VAT returns in Luxembourg.

Foreign businesses storing goods in Luxembourg must consider VAT registration if those goods are held for sale.

Holding inventory in Luxembourg for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record.

Luxembourg applies EU call-off stock simplification rules in line with the EU VAT Directive.

VAT is generally payable on the importation of goods into Luxembourg.

• Import VAT is due at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.
• Luxembourg allows postponed accounting for import VAT in certain circumstances, subject to authorisation and compliance conditions.

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Luxembourg consumers must charge VAT once the EUR 10,000 EU-wide B2C threshold is exceeded, unless they elect to use the One-Stop Shop (OSS) scheme.

The standard VAT rate of 17% generally applies. Businesses must register for Luxembourgian VAT or use OSS depending on their cross-border supply model.

EU-established businesses may reclaim Luxembourg VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Luxembourg VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements.

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms.

Luxembourg applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

Luxembourg does not operate a special export VAT authorisation scheme comparable to Ireland’s Section 56 system.

Intrastat declarations monitor intra-EU trade in goods. Luxembourg VAT-registered businesses must submit Intrastat filings if annual thresholds set by the Luxembourg statistical authorities are exceeded.

• Reporting is typically monthly once thresholds are exceeded.
• Filings include commodity codes, values, quantities, and partner member state details.
• Submissions are made electronically through the designated statistical reporting systems.

Luxembourg requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states.

Details typically include:

• Customer VAT identification numbers
• Total value of goods or services supplied
• Transaction type

ESLs must be filed electronically with the AED, generally on a monthly or quarterly basis depending on the reporting profile.

Businesses must issue VAT-compliant invoices that include:

• Supplier and customer details
• VAT number(s)
• Description of goods or services
• VAT rate(s) and VAT amount

Luxembourg does not currently operate a real-time invoice clearance or SAF-T reporting system for VAT purposes.

Time-of-supply rules:

• Goods: VAT generally becomes chargeable when the goods are delivered or when the invoice is issued, whichever occurs first.
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.
• Imports: VAT is due at customs clearance (unless postponed accounting applies).

VAT records must generally be retained for 10 years. VAT returns and payments are generally due by the 15th day of the month following the reporting period for periodic filers.