Luxembourg VAT

Luxembourg introduced Value Added Tax in 1970.  It is termed Taxe sur la valeur ajoutée (TVA).

As a member of the European Union, it follows the VAT laws, known as Directives, of the European Commission.  These govern the obligations for Luxembourg VAT registrations, returns, compliance, Intrastat and similar declarations.

The Luxembourg VAT regime is contained within the VAT Act 1979, along with amendments under the Grand Ducal Decrees.  The local tax administration is overseen by the Administration de l’Enregistrement et des Domaines.  This body issues regular statements on detailed VAT issues.

As with all EU member countries, foreign companies importing, buying or selling goods in Luxembourg may have to VAT register as a non-resident trader.

Should you register for Luxembourg VAT?

In a number of situations, foreign companies are required to register for VAT compliance in Luxembourg.  These include:

  • Importation of goods into Luxembourg – although there are progressive import VAT deferment schemes.
  • Buying and selling goods within the country.
  • Selling goods to Luxembourg consumers across the web, subject to a VAT registration threshold.
  • Holding goods in a warehouse on a consignment stock basis for resale
  • Organising live events and shows with paid-for admission on the door
  • If a company is otherwise a non-VAT trader, but is receiving services in the Luxembourg under the reverse charge rule.
  • The self supply of goods.

There are only a very limited number of situations in which a foreign company providing services needs to VAT register in Luxembourg.

Note that providers of electronic, broadcast or telecoms services to consumers in Luxembourg only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 28 member states.

You can read more about Luxembourg VAT on our VAT compliance, VAT registration or other related briefings.

Latest Luxembourgian news

Luxembourg cuts e-book VAT to 3%

February 25, 2019

Luxembourg has agreed to lower its VAT rate on electronic books from the standard rate of 17% to the super reduced rate of 3%. The move follows the agreement between EU states to permit the harmonisation of rate on e-books to their physical equivalent.

EU VAT and tax veto review

January 25, 2019

The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies.  The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states. 

EU implements VAT generalised reverse charge

January 09, 2019

The EU VAT Directive has been updated from 1 January 2019 to introduce a voluntary generalised reverse charge measure on domestic transactions in member states.