Key takeaways
- Luxembourg VAT rates: The standard VAT rate is 17%, with reduced rates of 14%, 8%, and a super-reduced 3% rate, plus a 0% rate for international transport.
- Registration threshold: Resident businesses must register once turnover exceeds €50,000, while non-resident businesses must register from their first taxable activity.
- Filing & penalties: VAT returns are filed monthly, quarterly, or annually, and late filings or payments can result in fines up to €10,000 and interest penalties.
Luxembourg VAT key facts (2026)
| Item | Luxembourg |
|---|---|
| Standard VAT rate | 17% |
| Reduced rates | 14%, 8%, 3% |
| Registration threshold (domestic businesses) | €50,000 (small business exemption) |
| Registration threshold (non-resident businesses) | None – register from first taxable supply. €10,000 EU-wide distance-selling threshold for B2C sales (OSS available). |
| VAT return filing frequency | Monthly, quarterly or annual by turnover (€620,000 / €112,000 limits) |
| E-invoicing status | B2G mandatory since 2023; B2B proposed from 2028 (bill 8815) |
| Fiscal representative required for non-EU businesses? | In some cases – only for imports by non-established, non-VAT-identified businesses |
Register for VAT in Luxembourg with Taxually: CrossTax handles your Luxembourg VAT registration, returns and fiscal representation.
Are you considering expanding your business into Luxembourg? Then understanding the Luxembourg VAT system will be essential. Our guide provides a thorough rundown of the Luxembourg VAT rates, the obligations for registration, and compliance details you’ll need to confidently venture into the Luxembourg market.
Updated October 2026: We updated the small business threshold to €50,000, corrected the filing platform and annual return deadlines, clarified fiscal representation, and added sections on e-invoicing and non-resident registration.
What is the Luxembourg VAT rate?
In Luxembourg, VAT is known as ‘Taxe sur la Valeur Ajoutée’ (TVA). The Luxembourg VAT framework offers several tax rates depending on the goods or services in question. The standard Luxembourg VAT rate is 17%, with reduced rates of 14%, 8%, and 3%. Below is a summary of the current Luxembourg VAT rates:
| Type of VAT | VAT Rate | Applicable Goods/Services |
|---|---|---|
| Standard VAT | 17% | All other taxable goods and services. |
| Reduced VAT rate (1) | 14% | Includes goods and services such as wine, washing and cleaning products, certain types of fuel, and printed advertising materials. |
| Reduced VAT rate (2) | 8% | Includes goods and services like heating oil, laundry services, hairdressing, and some works of art and antiques. |
| Super reduced VAT rate | 3% | Includes most foodstuffs, takeaway food, pharmaceutical products, books (including e-books), newspapers and periodicals, hotel accommodation, cafes, bars and nightclubs, public utilities, admission to cultural events and amusement parks, admission to sports events, and domestic passenger transport. |
| Zero rate VAT | 0% | Includes intra-community and international transport. |
Registering for VAT in Luxembourg
For resident companies, the small business VAT exemption threshold in Luxembourg has been €50,000 since 1 January 2025 (nil for non-resident companies, except EU businesses using the cross-border SME scheme with an "EX" number). Businesses exceeding this annual turnover must register for VAT.
As of July 1, 2021, the distance-selling threshold across EU member states is €10,000. If your company’s cross-border sales with any EU country exceed this amount, you must register for VAT in Luxembourg. VAT registration is also required if you hold stock in Luxembourg or participate in fulfillment services such as Amazon's FBA (Fulfilled-by-Amazon) which includes Luxembourg.
To register, you must submit the necessary forms, available in French, German, or English, to the Luxembourg tax authority. Upon submission, you should expect to receive your Luxembourg VAT number within three weeks.
Fiscal representation in Luxembourg
Non-EU businesses selling in Luxembourg are not required to appoint a fiscal representative, although the tax authorities may request a bank guarantee or cash deposit. A fiscal representative is only required for imports by a business that is neither established nor VAT-identified in Luxembourg.
E-invoicing and digital reporting in Luxembourg
E-invoicing is mandatory in Luxembourg for sales to the public sector (B2G), but not yet between businesses. A draft law would make B2B e-invoicing mandatory from 2028–2029.
- Public sector (B2G): Since 18 March 2023, all suppliers on public contracts must send structured e-invoices. They must use Peppol or MyGuichet.lu. Email and paper are not accepted.
- Formats: Peppol BIS Billing 3.0 and XRechnung 3.0.1 are accepted. From 1 October 2026, older XRechnung versions are refused.
- B2B plans: Bill no. 8815, filed in Parliament on 30 July 2026, proposes that all businesses must be able to receive e-invoices from 1 January 2028. Larger businesses would have to issue them from 1 July 2028 and all others from 1 January 2029. These dates are proposals and may change.
The EU's VAT in the Digital Age (ViDA) rules will add digital reporting for intra-EU B2B sales from July 2030. Source: Luxembourg VAT guide summarising guichet.lu and bill 8815.
How do non-resident businesses register for VAT in Luxembourg?
Non-resident businesses must register for VAT before their first taxable supply in Luxembourg. There is no turnover threshold for them, unless they use the EU cross-border SME scheme.
- Step 1 – Check if you are liable: You must register if you make sales in Luxembourg on which you are liable for VAT, or if you hold stock there.
- Step 2 – Prepare documents: You usually need your company deed in French or German, ID for the managers, and bank details (IBAN and BIC).
- Step 3 – File the initial declaration: Submit it through MyGuichet.lu or on the AED form. The deadline is 15 days after your activity starts.
- Step 4 – Wait for your number: EU businesses are handled by the Luxembourg 10 tax office. The AED does not publish a processing time.
- Step 5 – Plan for guarantees: The AED may ask a non-EU business for a deposit or bank guarantee.
Once registered, you file returns monthly, quarterly or annually, based on turnover. See guichet.lu: VAT return for the filing rules.
Luxembourg VAT return filing and penalties
Luxembourg VAT returns must be filed electronically on the eCDF platform. The eTVA-C service on MyGuichet.lu is used to view your VAT account, not to file returns. The frequency of filing depends on the annual turnover:
- Monthly VAT return for businesses with an annual turnover exceeding €620,000,
- Quarterly VAT return for businesses with an annual turnover of between €112,000 and €620,000.
- Annual VAT return for businesses with an annual turnover of below €112,000.
The deadline for VAT payments and return filings is the 15th of the month following the taxable period. Monthly and quarterly filers must also submit an annual VAT return by 1 May of the following year. Businesses that file only once a year must file by 1 March of the following year.
Late submission of a Luxembourg VAT return can incur a penalty of €250 to €10,000 depending on the severity of the infringement, while late payment of VAT may result in a penalty of 10% to 15% pa on the due amount.
Luxembourg Intrastat declarations
Companies trading goods in Luxembourg must submit Intrastat declarations if their sales exceed the threshold of €250,000 for arrivals and €200,000 for dispatches. Intrastat returns should be filed monthly by the 16th of the month following the reporting period. Failure to submit an Inrastat return may result in fines of €251 to €2,500.
Reverse charge in Luxembourg
The reverse charge mechanism in Luxembourg shifts the VAT payment responsibility from the supplier to the recipient. It is most commonly applied to services provided by non-resident businesses and for intra-community acquisitions.
Frequently asked questions
What is the VAT rate in Luxembourg?
Luxembourg’s standard VAT rate is 17%, the lowest in the EU. Reduced rates include 14% (for wine, cleaning products, and printed ads), 8% (for heating oil and hairdressing), and a super-reduced rate of 3% (for food, books, medicines, accommodation, and cultural services). A 0% rate applies to intra-EU and international transport.
When do I need to register for VAT in Luxembourg?
Resident businesses must register once annual turnover exceeds €50,000 (since 1 January 2025). There is no threshold for non-resident businesses, except EU businesses using the cross-border SME scheme. The EU-wide distance selling threshold of €10,000 also applies.
How do I register for VAT in Luxembourg?
Applications are submitted to the Luxembourg Tax Authority in French, German, or English. You’ll typically receive your Luxembourg VAT number within three weeks of submission.
Do foreign businesses need a fiscal representative in Luxembourg?
Generally no. Non-EU businesses are not required to appoint a fiscal representative, though the tax office may request a bank guarantee or cash deposit. A fiscal representative is only required for imports by a business that is neither established nor VAT-identified in Luxembourg.
How often must VAT returns be filed in Luxembourg?
- Monthly – turnover above €620,000
- Quarterly – turnover between €112,000–€620,000
- Annually – turnover below €112,000
Returns and payments are due by the 15th of the following month and filed electronically on the eCDF platform. Monthly and quarterly filers must also submit an annual return by 1 May; businesses that file only once a year must file by 1 March of the following year.
Are Intrastat declarations required in Luxembourg?
Yes. Intrastat returns must be filed monthly if trade exceeds €250,000 (arrivals) or €200,000 (dispatches). They are due by the 16th of the following month, with fines ranging from €251–€2,500 for late submissions.
