VAT rates in Luxembourg
Luxembourg has four national VAT rates. The rate must be checked transaction by transaction because legal use, packaging, destination and product classification all affect the outcome. See the VAT in Luxembourg guide for a full overview.
| Rate | Type | Typical scope |
|---|---|---|
| 17% | Standard rate | Most goods and services |
| 14% | Intermediate rate | Selected goods and services listed in Luxembourg VAT law |
| 8% | Reduced rate | Goods and services listed in Annex A, including certain energy, repairs and eligible art-sector transactions |
| 3% | Super-reduced rate | Goods and services listed in Annex B, such as food, medicines, books, newspapers, children clothing and restaurant services |
For product classification in the Benelux, the customs code and VAT rate method is often the safest starting point.
When must a company register for VAT in Luxembourg?
A Luxembourg VAT registration is required when your company carries out taxable transactions whose place of taxation is Luxembourg. Foreign businesses often need a Luxembourg VAT number when they sell goods from stock located in Luxembourg, import goods into Luxembourg, make local supplies, carry out construction or installation work, organise taxable events, or cannot use OSS or reverse charge.
VAT registration process in Luxembourg
VAT registration is filed with the Administration de l enregistrement, des domaines et de la TVA, known as the AED. The registration must normally be made within 15 days of starting the taxable activity. The file usually includes proof of activity in Luxembourg and corporate documents, such as a trade register extract, articles of association, VAT certificate from the country of establishment, director ID and power of attorney when an agent handles the process.
Luxembourg VAT returns: frequency and deadlines
VAT returns in Luxembourg are filed electronically through eCDF. The AED determines the applicable filing frequency, but the standard turnover thresholds are:
| Annual turnover excluding VAT | VAT return frequency | Deadline |
|---|---|---|
| Less than EUR 112,000 | Annual VAT return | Before 1 March of the following year |
| More than EUR 112,000 and less than EUR 620,000 | Quarterly returns plus annual return | Quarterly return before the 15th day of the following quarter, annual return before 1 May |
| More than EUR 620,000 | Monthly returns plus annual return | Monthly return before the 15th day of the following month, annual return before 1 May |
EC Sales Lists in Luxembourg
VAT-registered businesses in Luxembourg must file recapitulative statements when they make intra-EU supplies of goods or qualifying services to VAT-taxable customers in another EU Member State. For details, see the EC Sales List in Luxembourg guide. The statement must be filed before the 25th day of the month following the declaration period.
For goods, the statement is monthly by default. Quarterly filing is possible if intra-EU supplies of goods do not exceed EUR 50,000 excluding VAT in the relevant quarter or in any of the previous four quarters. For services, monthly filing is the principle, but quarterly filing can be chosen.
Intrastat in Luxembourg
Intrastat in Luxembourg is separate from the VAT return. It is a statistical declaration for intra-EU movements of goods managed by STATEC.
| Flow | Exemption threshold | Detailed threshold | Extended detailed threshold |
|---|---|---|---|
| Arrivals | EUR 250,000 | EUR 375,000 | EUR 4,000,000 |
| Dispatches | EUR 200,000 | EUR 375,000 | EUR 8,000,000 |
Once the threshold is exceeded, Intrastat is filed monthly. The deadline is the 6th working day of the following month for paper filing and the 16th working day for online filing through IDEP.WEB.
Luxembourg VAT rules for e-commerce
For EU e-commerce sellers, the EU-wide OSS threshold is €10,000 for qualifying cross-border B2C distance sales of goods and TBE services. Above it, VAT is due in the customer Member State, with OSS available as a simplification.
OSS does not cover every case. You may still need a Luxembourg VAT number if you store goods in Luxembourg, make local sales from Luxembourg stock, import goods into Luxembourg, or carry out transactions outside the OSS scope. For DDP imports, see the guide on DDP import into Luxembourg.
Small business VAT exemption in Luxembourg
Since 1 January 2025, the Luxembourg domestic SME exemption threshold is EUR 50,000 of annual turnover excluding VAT. A 10% tolerance can apply during the year. If turnover exceeds EUR 50,000 but does not exceed EUR 55,000, the exemption may continue until 31 December of that year. If turnover exceeds EUR 55,000, the exemption stops from the following day.
The EU cross-border SME scheme can also apply from 2025. To use it, a business must respect the Luxembourg national threshold and the EU-wide turnover threshold of EUR 100,000. Eligible businesses use an identification number with the suffix EX.
VAT deduction and refund in Luxembourg
VAT-registered businesses can deduct Luxembourg input VAT if the expenses are linked to taxable activities and supported by valid invoices or documents. If input VAT exceeds output VAT, the surplus can be carried forward or refunded. In principle, a refund can be monthly if the credit is at least EUR 1,200. If the amount is lower, an annual refund can apply if the credit exceeds EUR 2.40.
Penalties for non-compliance
Luxembourg VAT penalties are not symbolic. Late VAT registration, late VAT returns, incorrect returns, non-payment and accounting breaches can lead to penalties from EUR 250 to EUR 10,000 per infringement. If VAT is evaded or an undue refund is obtained, additional penalties of 10% to 50% of the VAT amount may apply.
Do you need a VAT agent in Luxembourg?
A VAT agent is not always legally mandatory in Luxembourg, but for a foreign company it is often the safest operational choice. A fiscal representative in Luxembourg can prepare the registration file, communicate with the AED, file VAT returns through eCDF, monitor EC Sales Lists and Intrastat, check VAT payment references and manage VAT credit follow-up.
FAQ
What is the standard VAT rate in Luxembourg?
The standard VAT rate in Luxembourg is 17%. Luxembourg also applies reduced rates of 14%, 8% and 3% for specific goods and services listed in Luxembourg VAT law.
Is Luxembourg VAT registration mandatory for foreign companies?
Yes, when the foreign company carries out taxable transactions deemed to take place in Luxembourg, unless a simplification applies. Common triggers include Luxembourg stock, imports, local sales, installation work and taxable events.
What is the VAT registration deadline in Luxembourg?
VAT registration must normally be completed within 15 days of the start of the taxable activity. Exempt businesses and non-taxable legal persons may also need to register before certain intra-EU operations.
What are the VAT return deadlines in Luxembourg?
Annual filers submit before 1 March of the following year. Quarterly filers submit periodic returns before the 15th day of the following quarter and an annual return before 1 May. Monthly filers submit before the 15th day of the following month and an annual return before 1 May.
What are the Intrastat thresholds in Luxembourg?
The Intrastat thresholds are €250,000 for arrivals and €200,000 for dispatches. Higher levels apply for detailed and extended detailed declarations.
Can an e-commerce seller use OSS instead of registering in Luxembourg?
Yes, if the transaction is within OSS scope. OSS does not replace a Luxembourg VAT registration when goods are stored in Luxembourg, sold locally from Luxembourg stock, imported into Luxembourg or used in transactions outside OSS.
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