This guide provides an overview of VAT in Luxembourg, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Luxembourg.
Luxembourg has the lowest standard VAT in the EU at 17%.
Foreign businesses that incur VAT on eligible expenses in Luxembourg may be able to reclaim it.
Doing business in Luxembourg? You’ll need to play by the rules of the Luxembourg VAT Law of February 12, 1979.
Businesses that exceed the threshold must register, while those below it may register voluntarily.
Luxembourg applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
The following documents would generally need to be submitted for an application to refund VAT in Luxembourg. For refunds under the 8th Directive - invoices for which a refund of VAT in Luxembourg is being claimed and documents for your appointed agent (if applicable - e.g., if you have appointed VAT IT as your agent). For refunds under the 13th Directive - invoices for which a refund of VAT in Luxembourg is being claimed, a valid tax certificate, completed claim form and documents for your appointed agent (if applicable).
It is important to note for an entity to apply for a refund of VAT in Luxembourg, it must not be established in Luxembourg or registered for VAT in Luxembourg (meaning that it must not have a VAT number in Luxembourg or a VAT ID in Luxembourg) and that is must not be making taxable supplies that would be subject to VAT in Luxembourg.
In addition to the Luxembourg standard VAT rate, there are also various reduced rates of VAT in Luxembourg, being 14%, 8% and 3%. Generally expenses for which a refund of VAT in Luxembourg can be applied will be subject to the Luxembourg standard VAT rate except for taxi fares and public transport fares; accommodation; food, drink and restaurant services and certain entertainment expenses, which are all subject to the reduced rate of VAT in Luxembourg of 3%.
Explore indirect tax information in these countries:
The DGFiP Has Spoken: France’s September e-Invoicing Deadline Stands. There has been speculation in recent weeks about whether France’s mandatory e-Invoicing deadline would be pushed back following a cyberattack on the DGFiP, France’s Public Finances Directorate. The French government has now responded directly, and the answer is unambiguous: no postponement. David Amiel, Minister for […]
How to Deregister for VAT and What to Consider First A drop in turnover, a change of business model, or the closure of a cross-border sales channel can all result in a company being registered for a tax it no longer needs to charge. Cancelling that registration is rarely as simple as writing to the […]
EDI vs E-Invoicing: What’s the Difference and Which Does Your Business Need? Both EDI and e-Invoicing move structured transactional data electronically between businesses. On the surface they look similar. In practice they serve different purposes, operate through different mechanisms, and carry very different compliance implications depending on where your business operates. Understanding the distinction is […]
Backdating VAT Registration: What Businesses Need to Know VAT registration has a deadline. Miss it, and the tax authority does not simply move the start date forward to when you applied. In most cases, it moves it back to when you should have registered in the first place. That gap between when you were liable […]
VAT IT and Helios: Every Invoice Verified, All Eligible VAT Recovered. When your business crosses borders, the tax rules, invoice formats, and compliance requirements change with every country you enter. Most expense platforms were not built to handle that. Managing it across multiple vendors is where things tend to go wrong. Helios and VAT […]
Oman’s e-Invoicing Rollout Just Changed. Here Is the Updated Timeline. On 9 August 2026, Oman’s Tax Authority issued Decision No. 189/2026, adjusting the phased rollout of its mandatory e-Invoicing programme and providing more clarity in respect of the affected taxpayers. The dates have moved. The direction has not. What Changed Phase Who It Covers Previous […]
VAT in the Events Industry: The Triggers That Catch Businesses Out Most event businesses think they have a VAT plan. What they actually have is a VAT filing plan. Those are not the same thing. Filing returns on time does not protect you if the underlying classification of your supplies is wrong. If admission […]
Branch vs Subsidiary: Why the Distinction Matters More Than You Think for VAT Reclaim Most multinationals know the difference between a branch and a subsidiary from a corporate law perspective. Fewer realise how dramatically that distinction affects their VAT position, and specifically, how much recoverable VAT they may be leaving on the table because of […]
California Is About to Tax SaaS. Here Is What Changes on 1 January 2027. If California was the state your US Sales Tax compliance team never had to think about, that changes in six months. Governor Gavin Newsom has signed Senate Bill 122 into law as part of California’s 2026-2027 budget. From 1 January […]
VAT in the Digital Age (ViDA): The Complete Guide to the EU’s VAT Reform VAT in the Digital Age, better known as ViDA, is the European Union’s biggest overhaul of VAT rules in a generation. After nearly two years of political deadlock, the reform is no longer a proposal, it is enacted EU law, with the first major deadlines within the […]
This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.
