Luxembourg VAT Rate 2026: 17% Standard Rate

How Much Is VAT in Luxembourg?

The standard VAT rate in Luxembourg is 17% in 2026, plus reduced rates of 3%, 8%, 14% on certain goods and services. It applies to most goods and services sold in Luxembourg. 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.

Current VAT Rates

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2024: Standard rate restored to 17%
• 2023: Temporarily cut to 16%
• 1970: VAT (TVA) introduced

Economic Impact

VAT contributes approximately 20-30% to Luxembourg's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the EU region.

Zero-Rated Items

The following items are zero-rated for VAT in Luxembourg:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in Luxembourg (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in Luxembourg:

• 3% rate: Food, books, pharmaceuticals, children's clothing and passenger transport
• 8% rate: Cleaning, hairdressing, bicycle repair and some energy
• 14% rate: Wine, advertising and heating

Luxembourg requires VAT registration once turnover exceeds €50,000 a year. Always confirm current thresholds and deadlines with the Administration de l'enregistrement (AED), as they are reviewed periodically.

VAT Registration

• Registration Threshold: €50,000
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Monthly, quarterly or annually by turnover
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Zero-rated with valid VAT numbers
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Subject to OSS rules for B2C sales

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in Luxembourg?

The standard VAT rate in Luxembourg is 17% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in Luxembourg?

To add VAT: multiply the net amount by 17%. To remove VAT from a gross amount: divide by 1.17. Use our calculator above for instant results.

Who needs to register for VAT in Luxembourg?

Luxembourg requires VAT registration once turnover exceeds €50,000 a year.

Can I reclaim VAT in Luxembourg?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.