Luxembourg operates a value-added tax (VAT) system known locally as Taxe sur la valeur ajoutée (TVA). Luxembourg is a founding member of the European Union (EU), and its VAT framework is aligned with the principles of the EU VAT Directive.
Luxembourg VAT is governed primarily by the amended VAT Law of 12 February 1979 (Loi modifiée du 12 février 1979 concernant la taxe sur la valeur ajoutée) and related regulations. VAT is administered by the Administration de l’enregistrement, des domaines et de la TVA (AED). The AED is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Luxembourg.
Businesses carrying out taxable activities in Luxembourg — whether resident or nonresident — must comply with Luxembourg VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Luxembourg and EU VAT rules.
