Luxombourg Sales Tax VAT

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The VAT rates of 6%, 12% and 15% increased to 8%, 14% and 17%. The VAT rate of 3% remains unchanged. The standard VAT rate of 17% remains the lowest within the EU.

Foreign businesses, registered as non-resident VAT traders in Luxembourg are obliged to follow the local rules on bookkeeping, recording and processing of invoices.  This includes:

  • Preparing invoices with the disclosure details outlined in the Luxembourg VAT laws.
  • Electronic invoices with proper signature, authenticity and agreement by the recipient.
  • Maintenance of accounts and records, which must be held for at least 7 years.
  • Correct invoicing of customers for goods or services in accordance with the Luxembourg time of supply VAT rules.
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

14% Reduced rate certain wines; solid mineral fuels, mineral oils and wood intended for use as fuel with the exception of wood for heating; washing and cleaning products; printed advertising matter; heat, cooling and steam with the exception of district heating; safe custody and administration of securities; administration of credit and credit guarantees by a person or organisation other than that granting the credit.

8% Reduced rate cleaning in private households; minor repairs of bicycles, shoes and leather goods, clothing and household linen; hairdressing; district heating; natural gas; electricity; firewood; LPG; cut flowers and plants for decorative use; some works of art and antiques.

3% Reduced rate foodstuffs; soft drinks; children’s clothing and footwear; water supplies; certain pharmaceutical products; certain medical equipment for disabled persons; domestic passenger transport; certain books (excluding e-books); certain newspapers and periodicals; admission to cultural events and amusement parks; some pay TV/cable TV; agricultural supplies (excluding pesticides); hotel accommodation; restaurants (excluding alcoholic beverages); take away food; bars, cafes and nightclubs, cut flowers and plants for food production; supplies for of new buildings; some construction work on new buildings; admission to sports events; use of sports facilities; undertaker and cremation services; collection of domestic waste; some telephone services; some writers and composers services (royalties); raw wool; treatment of waste and waste water.

0% Reduced rate intra-community and international transport.

If you wish to apply for Sales Tax in Luxombourg, please register in the form below the reasons for needing sales tax VAT in Luxombourg or send us an email.