Rss Facebook-f Linkedin-in
EASYTAX, VAT fiscal representative

VAT in Luxembourg

VAT Guide for EU countries within Europe in 2022

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 VAT refund. Luxembourg

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.

Basic information

EU membership1957
ISO codeLU
VAT introduced in Luxembourg1969
Nom de la TVA in LuxembourgTaxe sur la valeur ajoutée (TVA)
VAT ID format in LuxembourgLU99999999
Territories with special status in Luxembourgn/a

VAT rates in Luxembourg

Standard VAT rate16 %
Reduced VAT rate (1)13 %
Reduced VAT rate (2)7 %
Super reduced VAT rate3 %
VAT parking rate13 %
Zero VAT rateno

Thresholds triggering VAT reporting obligations in Luxembourg

Intrastat threshold at introduction250 000 EUR
Intrastat threshold on dispatch200 000 EUR
Distance selling thresholdAs of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Luxembourg

Intrastat returnmonthly depending on threshold
EC Sales List (ESL) returnmonthly, quarterly
VAT returnsmonthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions
Reporting currencyEUR

VAT-related penalties in Luxembourg

Failure to file a VAT returnPenalty of EUR 250 to 10,000 per return.
Late payment of VATA 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/DEBPenalty of EUR 250 to 10,000 per return.

Useful links on VAT in Luxembourg

Tax Administration in LuxembourgTax authorities
Ministry of Finance in LuxembourgMinistry of Finance
Check a VAT number in LuxembourgCheck a VAT number
EU VAT GuideEU VAT Guide
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.

Les taux de TVA actuellement en vigueur in Luxembourg sont les suivants:

  • Standard VAT rate: 16 %
  • Reduced VAT rate (1): 13 %
  • Reduced VAT rate (2): 7 %
  • Super reduced VAT rate: 3 %
  • VAT parking rate: 13 %
  • Zero VAT rate no

Certain transactions in Europe may require VAT registration and the filing of VAT returns in Luxembourg:

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

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 of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the 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 ratesin Luxembourg: standard rate (16 %), reduced rates 1 and 2 (13 % and 7 %).
  • 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.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

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. 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.

How do I get a VAT number in Luxembourg?

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

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:

  • 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.

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 introductio n in Luxembourg (250 000 EUR HT/an)
    – Intrastat threshold on dispatch in Luxembourg (200 000 EUR HT/an).
    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.

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:

  • 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.


*This information is subject to change without notice.

OTHER GUIDES countries

Need help?

VAT simulator

VAT SIMULATOR

Do you need a VAT number and a fiscal representative? in Luxembourg.
Find out with just a few clicks.

START
Expert

Contact
an expert

Are you growing your business
and looking to ensure
your VAT compliance in Luxembourgquickly and easily?

CONTACT US

VAT news

in Luxembourg

Luxembourg – provisional rate change for 2023

From January 1, 2023 to December 31, 2023 the following VAT rates are applicable: standard rate: 16% (reduced from 17% to 16%); intermediate rate: 13% (drop from 14% to 13%); reduced rate: 7% (reduced from 8% to 7%). The super-reduced rate of 3% remains unchanged.
Country Briefs
6 January 2023

Luxembourg – Reduction of VAT rates envisaged

Following negotiations between the Luxembourg government, employers’ representatives and trade union representatives, the government plans to sign an agreement providing for a temporary reduction in the following VAT rates Le taux normal passerait de 17% à 16% Le taux intermédiaire de passerait de 14% à 13% Le taux réduit passerait de...
Country Briefs
28 September 2022
More VAT news in Luxembourg
Newsletter

NEWSLETTER

Get the latest news on VAT regulations in Europe directly in your mailbox.

We respect your personal data

About Us

Easytax acts as a VAT agent and fiscal representative in the 27 European Union countries and some third countries for companies with international VAT issues. More >

VAT Services
VAT info
Easytax logo, Fiscal Representative
Facebook-f Linkedin-in Rss

© Easytax 2021 – Legal Info, T&C – Cookies – Personal Data