2024 Guide – VAT in Luxembourg

Appoint a fiscal representative in Luxembourgand make sure to be 100% VAT compliant

VAT in Luxembourg

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.

In this VAT guide, we have brought together the specific features of the Luxembourg regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.

With EASYTAX, be 100% VAT compliant, always.

Basic information

EU membership 1957
ISO code LU
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 yes

Thresholds triggering VAT reporting obligations in Luxembourg

Intrastat threshold at introduction EUR 250,000
Intrastat threshold on dispatch EUR 200,000
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 return monthly depending on threshold
EC Sales List (ESL) return monthly, quarterly
VAT returns monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions
Reporting currency EUR

VAT-related penalties in Luxembourg

Failure to file a VAT return Penalty of EUR 250 to 10,000 per return.
Late payment of VAT A fine of 10% to 50% of the VAT due per year. If a formal notice has been issued, the administration will apply an additional interest of 7.2% per year from the date of issuance of the formal notice.
Failure to report ESL/DEB Penalty of EUR 250 to 10,000 per return.

Useful links on VAT in Luxembourg

Tax Administration 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
Need VAT assistance in Luxembourg? Contact us now.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

A foreign company carrying out transactions in Luxembourg subject to Luxembourg VAT, may be required to appoint a tax representative. Established in Luxembourg, the fiscal representative will fulfill the company’s VAT obligations to the Luxembourg tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.

Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.

Why entrust your VAT obligations in Luxembourg to a tax representative?

To secure your operations, lighten your company’s administrative burden, and control tax risks in Luxembourg.
Intra-Community and Luxembourg VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.

Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.

For VAT compliance in Luxembourg, choose EASYTAX

Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Luxembourg, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.

Need a tax representative in Luxembourg? Contact us now.

Luxembourg, a founding member of the European Union and member of Benelux, has the highest GDP per capita in the EU.
The economy in Luxembourg is driven by the financial services industry which is responsible for half of the country’s GDP thanks to favourable taxation. A beneficial legal and regulatory framework has attracted banks, insurance companes, investment funds and specialist service providers from around the world.

Luxembourg’s VAT regulations bring together the EU directives and the Value Added Tax Act of 12th Feburary 1979.

Any person carrying out activities which are subject to VAT must register with the authorities within two weeks of starting up these activities. However, there are several exceptions to this rule. We recommend you use the services of a fiscal representative in Luxembourg.

The VAT rates currently in force in Luxembourg are as follows:

  • 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 yes

Need a tax representative in Luxembourg? Contact us now.

Do you need a VAT fiscal representative in Luxembourg? Certain operations may require VAT registration and the filing of VAT returns in Luxembourg:

To check whether your activities give rise to VAT obligations in Luxembourg, use our VAT simulator .

Need a VAT tax representative in Luxembourg? Contact us now.

When do e-sellers need to register for a VAT number in Luxembourg?

In Luxembourg , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay VAT in Luxembourg via the One Stop Shop.
  • or when they hold a stock of goods in Luxembourg and must report the stock supply transactions.

What are the VAT obligations for e-traders in Luxembourg ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT rates in Luxembourg: standard rate (17 %), reduced rates 1 and 2 (14 % and 8 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Luxembourg.

Find out more:

Need a VAT tax representative in Luxembourg? Contact us now.

Why identify yourself to VAT in Luxembourg?

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.

Luxembourg VAT is named Taxe sur la valeur ajoutée (TVA)and the VAT numbers in Luxembourg have the following structure: LU99999999.

How do I get a VAT number in Luxembourg?

The administrations in charge of VAT in Luxembourg are the following: Tax authorities, Ministry of Finance.

VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Luxembourg, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

To check if your activities require VAT identification in Luxembourg, use our VAT simulator or contact us.

Companies with a VAT number in Luxembourgmust complete and file dVAT decl arations in Luxembourg detailing all taxable income (sales) and expenses (costs), at regular intervals: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:

  • Penalties for failure to file a VAT return in Luxembourg: Penalty of EUR 250 to 10,000 per return.
  • Penalties for late payment of VAT in Luxembourg: A fine of 10% to 50% of the VAT due per year. If a formal notice has been issued, the administration will apply an additional interest of 7.2% per year from the date of issuance of the formal notice.

Need VAT assistance in Luxembourg? Contact us now.

In addition to VAT returns, companies may be required to provide the Luxembourg authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Luxembourg authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introduction in Luxembourg (EUR 250,000 excl.VAT per annum)
    – Intrastat threshold on dispatch in Luxembourg (EUR 200,000 excl.VAT per annum).
    Failure to comply with the deadlines imposed by the Luxembourg authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Luxembourg are for tax purposes.
    Failure to comply with the deadlines imposed by the Luxembourg authorities for the filing of these ESL returns wil incur a penalty payment for the company.

Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.

In principle, a non-resident company in Luxembourg can recover all or part of the VAT incurred on its expenses.

There are three possible scenarios:

  • The company is established within the European Union or not, is already registered for VAT in Luxembourg, or is obliged to register for VAT in Luxembourg. In this case, it must apply for a VAT refund via the periodic VAT return filed in Luxembourg, according to a periodicity: monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions.
  • The company is established within the European Union, is not registered for VAT in Luxembourg and is not required to do so. In this case, a VAT refund should be requested via the electronic portal of the tax authorities in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Luxembourg. In this case, they must use the services of a fiscal representative to carry out what is required by the Luxembourg authorities on their behalf.
    > Learn more about our VAT recovery services.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

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