Whether you’re a European or non-European company, establishing certain activities in Luxembourg may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Luxembourg.
If you deal with companies in Luxembourg, you may be able to claim a Luxembourg VAT refund.
Here you can find the specifics of VAT regulations in Luxembourg, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|VAT introduced in Luxembourg||1969|
|VAT name in Luxembourg||Taxe sur la valeur ajoutée (TVA)|
|VAT ID format in Luxembourg||LU99999999|
|Territories with special status in Luxembourg||n/a|
VAT rates in Luxembourg
|Standard VAT rate||17 %|
|Reduced VAT rate (1)||14 %|
|Reduced VAT rate (2)||8 %|
|Super reduced VAT rate||3 %|
|VAT parking rate||14 %|
|Zero VAT rate||no|
Thresholds triggering VAT reporting obligations in Luxembourg
|Intrastat threshold at introduction||200 000 EUR|
|Intrastat threshold on dispatch||150 000 EUR|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Luxembourg
|Intrastat declaration||monthly depending on threshold|
|EC Sales List (ESL) declaration||monthly, quarterly|
|VAT returns||monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions|
VAT-related penalties in Luxembourg
|Failure to file a VAT return||Penalty of EUR 250 to 10,000 per return.|
|Late payment of VAT||Penalty of EUR 250 to 10,000 per month overdue and tax penalty of up to 10% of unpaid VAT, and 50% in case of proven fraud.|
|Failure to report ESL/DEB||Penalty of EUR 250 to 10,000 per return.|
Useful links on VAT in Luxembourg
|Tax Authorities in Luxembourg||Tax authorities|
|Ministry of Finance in Luxembourg||Ministry of Finance|
|Check a VAT number in Luxembourg||Check a VAT number|
|EU VAT Guide||EU VAT Guide|
The current VAT rates in Luxembourg are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Luxembourg:
In Luxembourg just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
You may need a VAT number in Luxembourg to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Luxembourg, use our VAT simulator or contact us.
VAT Luxembourg is named Taxe sur la valeur ajoutée (TVA)and the VAT numbers in Luxembourg have the following structure: LU99999999.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Luxembourgyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Luxembourg must complete and submit VAT returns in Luxembourg detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions.
Failure to comply with the deadlines imposed by the Luxembourg authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Luxembourg:
In addition to VAT returns, companies may be required to provide the Luxembourg authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Luxembourg can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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