Luxembourg VAT Calculator
How Much Is VAT in Luxembourg?
The standard VAT rate in Luxembourg is 17% in 2026. Other rates: 14% — Certain wines, printed advertising material, management of securities and credit guarantees; 8% — Gas and electricity, hairdressing, minor repairs of bicycles, shoes and clothing, cut flowers; 3% — Food, non-alcoholic drinks, restaurant meals (excluding alcohol), books and e-books, newspapers, medicines, children's clothing and shoes, hotels, passenger transport; 0% — Exports and intra-EU B2B supplies. Locally the tax is called Taxe sur la valeur ajoutée (TVA). Among the 27 EU member states, standard VAT ranges from 17% in Luxembourg to 27% in Hungary.
How to calculate Luxembourg VAT
To add 17% VAT to a net (tax-exclusive) price, multiply it by 1.17. To remove VAT from a gross (tax-inclusive) price, divide it by 1.17.
- Add VAT: EUR 100 net × 1.17 = EUR 117 gross (that is EUR 17 of VAT)
- Remove VAT: EUR 117 gross ÷ 1.17 = EUR 100 net (that is EUR 17 of VAT)
Use the Luxembourg VAT calculator above for any amount, or compare Luxembourg with every other country in our VAT rates by country table.
Luxembourg VAT Rates Overview
Every VAT rate currently in force in Luxembourg
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 17% | Most goods and services, including alcoholic drinks |
| Parking rate | 14% | Certain wines, printed advertising material, management of securities and credit guarantees |
| Reduced rate | 8% | Gas and electricity, hairdressing, minor repairs of bicycles, shoes and clothing, cut flowers |
| Super-reduced rate | 3% | Food, non-alcoholic drinks, restaurant meals (excluding alcohol), books and e-books, newspapers, medicines, children's clothing and shoes, hotels, passenger transport |
| Zero rate | 0% | Exports and intra-EU B2B supplies |
VAT History and Local Rules in Luxembourg
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2025: Small business franchise threshold raised from EUR 35,000 to EUR 50,000
- 2023: Temporary one-point cut of the 17%, 14% and 8% rates for the whole year
- 2015: Standard rate raised from 15% to 17%, with 12% to 14% and 6% to 8%
- 1970: VAT introduced
Is the VAT rate the same everywhere in Luxembourg?
The same VAT rates apply throughout Luxembourg.
Good to know
Luxembourg has the lowest standard VAT rate in the EU at 17%, which is one reason fuel, tobacco and alcohol shopping draws cross-border buyers.
The 3% super-reduced rate covers an unusually broad range, including restaurant meals, hotels and children's clothing.
Luxembourg's many investment funds benefit from the VAT exemption for fund management services.
Zero-Rated and Exempt Supplies in Luxembourg
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods outside the EU
- Intra-EU B2B supplies of goods to VAT-registered customers
- International transport of goods
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Financial and insurance services
- Medical and healthcare services
- Education and vocational training
- Banking and fund management services
- Letting of real property
- Supplies by small businesses under the franchise scheme
Luxembourg VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Luxembourg.
| Local name | Taxe sur la valeur ajoutée (TVA) |
|---|---|
| VAT number format | LU + 8 digits (e.g. LU12345678) |
| Registration threshold | EUR 50,000 annual turnover (franchise scheme), with a 10% tolerance up to EUR 55,000 |
| Non-resident businesses | Non-established businesses must register from their first taxable supply in Luxembourg |
| Filing frequency | Monthly above EUR 620,000 turnover, quarterly between EUR 112,000 and EUR 620,000, annual only below EUR 112,000 |
| Filing and payment deadline | 15th day of the month after the period; annual return by 1 May of the following year |
| E-invoicing / reporting | E-invoicing is mandatory for supplies to public bodies (B2G); no B2B mandate in 2026 |
| Tax authority | Administration de l'enregistrement, des domaines et de la TVA (AED) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Administration de l'enregistrement, des domaines et de la TVA (AED) before relying on them.
Cross-Border Sales and Refunds in Luxembourg
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign sellers of digital services to consumers in Luxembourg charge Luxembourg's VAT rate. EU businesses can declare it through the One-Stop Shop (OSS) once their EU-wide cross-border B2C sales exceed EUR 10,000; non-EU businesses use the non-Union OSS from the first sale.
Tourist VAT refunds: Non-EU visitors can reclaim VAT through operators such as Global Blue; a minimum purchase of about EUR 74 is commonly applied.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Frequently Asked Questions
Common questions about VAT in Luxembourg
What is the current VAT rate in Luxembourg?
The standard VAT rate in Luxembourg is 17% in 2026. Other rates in force: 14% (parking rate), 8% (reduced rate), 3% (super-reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Luxembourg?
To add 17% VAT, multiply the net price by 1.17. To remove it from a VAT-inclusive price, divide by 1.17; the difference is the VAT. The calculator at the top of this page does both.
Does Luxembourg have the lowest VAT in the EU?
Yes. Its 17% standard rate is the lowest standard rate in the EU. It also applies 14%, 8% and a 3% super-reduced rate.
What is the VAT rate on restaurant meals in Luxembourg?
Restaurant meals are taxed at the 3% super-reduced rate, but alcoholic drinks served with them are taxed at 17%.
What is the VAT exemption threshold in Luxembourg?
Since 1 January 2025 small businesses with annual turnover up to EUR 50,000 can use the franchise scheme and not charge VAT. Exceeding it by up to 10% lets the exemption continue until the end of that year.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.