Luxembourgian VAT registration

In Luxembourg, the requirement to register for value added tax (VAT) depends on whether the business is established in Luxembourg and the nature of the taxable activities carried out.

For Luxembourg-established businesses, VAT registration is required once annual taxable turnover exceeds EUR 35,000. This is the statutory domestic threshold under Luxembourg VAT law. Businesses below this threshold may benefit from the small undertaking exemption regime, provided they meet the relevant conditions and do not opt to register voluntarily.

There is no VAT registration threshold for nonresident businesses making taxable supplies in Luxembourg. Where a foreign business carries out taxable activities in Luxembourg and is not established there, VAT registration is generally required from the first taxable supply, unless the reverse charge mechanism fully applies.

Luxembourg businesses making cross-border B2C supplies of goods or services to customers in other EU member states must consider the EU-wide EUR 10,000 One-Stop Shop (OSS) threshold for total cross-border EU sales. Once this threshold is exceeded, businesses must register for the OSS scheme or register for VAT in the relevant member states.

Apart from the domestic EUR 35,000 threshold for Luxembourg-established entities, there are no general simplification thresholds. VAT registration is typically mandatory once the relevant taxable activity is undertaken, particularly for nonresident or cross-border business models.

Foreign businesses may need to register for Luxembourgian VAT if they engage in activities such as:

• Importing goods into Luxembourg (imports trigger VAT at customs clearance)
• Selling goods or services in Luxembourg directly to Luxembourg customers
• Making domestic B2B or B2C supplies within Luxembourg where the reverse charge does not apply
• Providing electronically supplied services or digital products to Luxembourg consumers where OSS is not used or local registration is chosen
• Engaging in intra-EU supplies or acquisitions involving Luxembourg
• Holding inventory in Luxembourg (for example, in a warehouse or fulfilment centre)
• Running ecommerce operations delivering taxable goods into Luxembourg

Registration may also be required where a business makes zero-rated intra-EU supplies but also carries out taxable domestic activities.

To register for VAT in Luxembourg, applicants (resident or nonresident) typically need to provide:

• A completed VAT registration application submitted to the Administration de l’enregistrement, des domaines et de la TVA (AED)
• Legal entity details: company name, legal form, country of incorporation, registered address, directors or managers
• Description of business activities and expected Luxembourg taxable turnover
• Details of taxable supplies to be made in Luxembourg
• Power of attorney for a fiscal representative, where required (generally mandatory for many non-EU businesses)
• Banking and contact details for VAT correspondence
• Supporting documentation demonstrating the nature of Luxembourg activities (especially for nonresident applicants)

Applications are submitted to the AED, typically via electronic or written procedures depending on the applicant’s profile. VAT registration should generally be completed before taxable supplies begin, as late registration may result in penalties or backdated VAT assessments.

Once approved, the AED issues a Luxembourg VAT number. Registration timelines vary depending on the completeness and complexity of the application.

• Structure: LU + 8 digits (for example, LU12345678)
• The LU prefix is used for EU VAT identification and verification purposes, including validation through the VAT Information Exchange System (VIES).

After registering for VAT in Luxembourg, businesses must comply with ongoing VAT obligations, including:

• Filing periodic VAT returns (monthly, quarterly, or annually depending on turnover and status assigned by the AED)
• Charging and collecting Luxembourg VAT at the applicable rates (standard rate 17%)
• Issuing VAT-compliant invoices in accordance with Luxembourg and EU invoicing rules
• Submitting EC Sales Lists (recapitulative statements) and Intrastat reports where applicable
• Maintaining VAT records and accounting documentation in line with Luxembourg legislation
• Using the One-Stop Shop (OSS) scheme where applicable for EU cross-border B2C supplies
• Paying VAT due by the statutory deadlines

Failure to comply with Luxembourgian VAT requirements may result in penalties, interest charges, and enforcement action by the Administration de l’enregistrement, des domaines et de la TVA, particularly in cases of late registration, incorrect filings, or unpaid VAT liabilities.