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Luxembourg raises VAT registration threshold 2020

  • Dec 3, 2019 | Richard Asquith

Luxembourg is proposing to raise its Value Added Tax registration threshold from €30,000 to €35,000 from 1 January 2020.

This requires permission from the European Commission to deviate from the EU VAT Directive limits. The EC has already backed the Luxembourg change.

The new threshold only applies to Luxembourg-resident businesses. Foreign companies would still be required to register, if applicable, on their first sale. The exemption is businesses selling on a B2C distance selling basis, and may take advantage of the distance selling thresholds.

Need help with VAT compliance in Luxembourg?

Researching Luxembourg's VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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