VAT in Luxembourg 2026
VAT in Luxembourg applies to local supplies, intra-Community acquisitions, and imports. In 2026, the standard rate is 17%, with preferential rates of 14%, 8%, and 3%. Before choosing a rate, determine where the tax is levied and who is responsible for the tax.
This guide covers VAT for a foreign company: warehousing, B2B services, reverse charge, import, OSS, IOSS, and tax refunds. If you need support with your obligations, Taxenlight offers foreign VAT registration and foreign VAT return processing.
VAT in Luxembourg – what to check before your first invoice?
Luxembourg VAT is a consumption tax administered by the AED. Foreign companies should first investigate the transaction before selecting the appropriate rate, VAT number, and reporting method.
Basic rate
Used when the activity is not subject to the 14%, 8%, 3% or exemption rate.
VAT number
The VAT identification number has the prefix LU and 8 digits. It should not be confused with the matricule number.
VAT administration
The competent authority is the Administration de l'enregistrement, des domaines et de la TVA.
Reporting
After registration, basic declarations and summary information are submitted electronically.
VAT rates in Luxembourg in 2026
The official administration lists four VAT rates applicable in Luxembourg. The settlement currency is the euro, and the preferred rate must be based on the relevant annex to the VAT Act, effective from 1 January 2026.
| Rate | Application | Practical risk |
|---|---|---|
| 17% | Basic rateTaxable activities for which the regulations do not provide for a preferential rate or exemption. | First, determine whether the transaction is subject to VAT in Luxembourg and whether the seller charges the tax. |
| 14% | Intermediate rateOnly categories listed in Annex C, including certain wines and selected energy products. | The scope is closed. The generic product name is insufficient to apply 14%. |
| 8% | Reduced rateCategories from Annex A, including selected goods and services, including those related to bicycles, energy or works of art. | You must confirm the specific product classification and preference conditions. |
| 3% | Super-reduced rateSelected categories from Annex B, including food, certain publications, passenger transport, catering and short-term accommodation. | Additional elements, alcohol, form of publication or scope of work may change the qualification. |
When is a transaction subject to Luxembourg VAT?
The Luxembourg rate only applies if the place of taxation is in Luxembourg. The customer's address, the seller's country of residence, or the invoice currency alone do not determine the outcome.
Name the benefit
Determine whether you are selling goods, services, delivery and assembly, or real estate-related services.
Specify the location
For goods, check the location and transport route; for services, apply the general rule or the appropriate exception.
Verify the buyer
Confirm whether the customer is a taxpayer, consumer or platform and what VAT number they use.
Determine the biller
Check whether VAT is settled by the seller, buyer, platform, OSS or IOSS.
The most common VAT scenarios in Luxembourg
to the supply of goods and services . The table below helps you choose the right approach.
| Model | What usually happens in VAT | What to check before takeoff |
|---|---|---|
| Warehouse in Luxembourg | The movement of your own goods may constitute an ITC, and the sale from stock may constitute a local delivery. | Date of first movement, stock owner, fulfillment model and need for LU number. |
| Import in your own name | A customs declaration and import VAT are created; subsequent sale requires separate qualification. | Importer, EORI, tariff code, customs document, deduction and onward delivery. |
| B2B service | A typical service is generally taxed in the buyer's country, which often settles the reverse charge. | Customer status and VAT number, and exceptions relating to, among other things, properties and events. |
| B2C distance selling | Luxembourg VAT may be due as a tax in the country of consumption and settled by the OSS. | Total EU threshold of €10,000, country of transport termination and OSS possibility. |
| Delivery with assembly | The place of delivery is generally where the goods are installed or assembled. | Scope of installation, buyer status, reverse charge and the need for seller registration. |
When to check VAT registration in Luxembourg?
It is worth considering registration before the first local activity, especially in the case of warehousing, intra-Community acquisition of own goods, import, local sale, delivery with assembly or a service that is not billed by the buyer.
For non-residents, the obligation may arise from the first transaction subject to local taxation. The national threshold of €50,000 is part of the small business exemption system, not automatic protection for every foreign company.
From 2025, a qualifying company established in another EU country can apply for the cross-border SME exemption. However, it must meet the conditions of the procedure, including a €100,000 annual EU turnover limit and the Luxembourg domestic limit. Transactions not covered by the exemption, such as certain intra-Community acquisitions, still require a separate assessment.
Documents, matricule number, procedure and rules for non-EU entities are discussed in the VAT Registration in Luxembourg 2026.
Signs that analysis is urgent
- the goods go to the Luxembourg warehouse before being sold,
- the company acts as an importer in Luxembourg,
- sales start from local stock,
- assembly or work takes place on site,
- the buyer cannot settle the reverse charge,
- local VAT deduction is needed.
Registration is a separate intention and a separate procedure
The full guide shows when you need a VAT LU number, what documents to prepare and what to start after registration.
Reverse charge in Luxembourg
Reverse charge transfers the obligation to settle VAT from the seller to the buyer. It is most often relevant for typical B2B services provided to Luxembourg taxpayers, but it is not a universal rule for every business-to-business transaction.
Check the place
First, determine whether the service or supply is actually taxable in Luxembourg.
Verify the buyer
Confirm your taxpayer status and the validity of your LU number in VIES. The number itself does not determine the mechanism.
Don't ignore other events
Reverse charge does not remove WNT of your own goods, imports or local sales from your warehouse.
Import and import VAT in Luxembourg
An import occurs when goods from a non-EU country enter Luxembourg. The customs document, the importer's status, and the subsequent flow of goods determine the settlement—not the courier agreement itself.
Before check-in
- determine the importer and customs representative,
- prepare your EORI number and tariff code,
- check customs value and delivery terms.
On the customs document
- verify the importer's name and VAT number,
- combine the report with the invoice and transport,
- secure a document giving the right to deduction.
After import
- classify further sales,
- settle imports in the appropriate period,
- reconcile VAT, customs duties and warehouse records.
VAT returns in Luxembourg - the most important shortcut
After registration, the AED assigns the taxpayer to monthly and annual, quarterly and annual, or annual only. Declarations are submitted electronically via eCDF, but the company should not independently change the frequency based on turnover alone.
Monthly and annual
Model for entities assigned by AED to frequent reporting.
Quarterly and annual
Periodic declarations do not replace the annual closing or additional reports.
Annual only
Available for taxpayers assigned to this frequency by the administration.
Fields, deadlines, corrections and payments are in a separate guide
Go to the instructions for companies that already have an LU number and need to start regular reporting.
VIES, Intrastat, OSS, IOSS and eCDF
A single company can simultaneously settle sales locally, report IDT, use OSS, and submit Intrastat. Each stream requires a separate rule and consistent source data.
EU number and transactions
Before submitting an IDT or reverse charge, check the contractor's number in the VIES system and retain the verification result. The summary information is submitted separately from the standard VAT return.
B2C Sales in the EU
OSS can cover intra-Community distance sales of goods and selected B2C services. It does not account for imports, intra-Community acquisition of own stock, or local VAT deductions.
Imported shipments
IOSS applies to qualifying distance sales of imported goods in consignments with an intrinsic value of up to EUR 150.
Intrastat
Intrastat describes the physical flow of goods after certain thresholds have been crossed. It does not replace VAT returns or recapitulative statements.
Electronic declarations
eCDF is used for electronically submitting declarations and summary information. Access and the calendar must be activated after registration.
Public e-invoices
In public procurement, a standard PDF does not meet the specific e-invoicing requirement. An appropriate channel, such as Peppol or the MyGuichet.lu form, should be used.
VAT deduction and refund in Luxembourg
The correct way to recover tax depends on whether the company is required to register locally and whether the activities performed entitle the company to a deduction.
Company with LU number
VAT relating to activities giving rise to the right to deduct is generally declared in a local declaration on the basis of a correct invoice or customs document.
A company from another EU country
If there is no obligation to register in Luxembourg, you can submit an electronic refund application to the administration of your country of residence.
Non-EU company
An entity without a local registration obligation uses a separate procedure directed to the AED, after meeting the appropriate conditions.
The most common VAT errors in Luxembourg
Errors are rarely the result of an incorrect rate alone. More often, the problem is an inconsistent model of transactions, documents, and reports.
Invoice-only analysis
The obligation may have arisen earlier - upon import or movement of own stock.
Automatic threshold of €50,000
The threshold operates within the SME system. Foreign companies cannot use it unless they meet the conditions.
Reverse charge "because B2B"
An active customer number is not enough. The type of transaction and place of taxation are also important.
OSS for local backup
OSS does not settle the ITC of its own goods or regular sales from the Luxembourg warehouse.
Inconsistent import
Importer, EORI, VAT number, customs document and right of deduction must indicate the same model.
One reporting calendar
VAT declaration, summary statement, Intrastat, OSS and IOSS have different scopes and deadlines.
Luxembourg VAT 2026 Summary
The standard VAT rate is 17%, with preferential rates of 14%, 8%, and 3%. However, for a foreign company, the place of taxation, the entity settling VAT, and the prior movement of goods are more important than the rate itself.
First the transaction
Determine the product or service, location, buyer status and transportation route.
Then the accountant
Check local VAT, reverse charge, WDT, OSS, IOSS or SME exemption.
At the end of the reports
Combine invoice, declaration, EU information, Intrastat and customs documents.
VAT in Luxembourg - Questions and Answers
Short answers to the questions that most often arise when planning sales, services, warehouses and imports.
The standard VAT rate is 17%. Rates of 14%, 8%, and 3% also apply for categories specified in Luxembourg VAT law.
The settlement currency is the euro. If the tax base elements are in a different currency, the appropriate exchange rate must be used and consistency with the invoice and records maintained.
The VAT number consists of the LU prefix and 8 digits. A separate identifier is the 13-digit matricule number used in administrative contacts with the AED.
No. First, you must determine the place of taxation. The type of transaction, the location of the goods, the transport route, the customer's status, and special rules for services all play a role.
No. Reverse charge may limit the obligation for a specific transaction, but does not remove the obligations arising from import, ITC of own goods, warehousing or other local activities.
Only for transactions covered by the OSS. The procedure does not replace the settlement of imports, the intra-Community acquisition of own goods, or the normal local sale of own stock in Luxembourg.
No. This is the limit of the domestic SME exemption. A company from another EU country can benefit from it after successfully entering the cross-border procedure and meeting its conditions, including the EU-wide turnover limit.
Official information indicates that importers without an LU VAT number pay VAT upon import. Importers with an LU number can defer payment but report the imported goods on their subsequent VAT return.
Monthly, quarterly, and annual returns are filed electronically via eCDF. Detailed forms, deadlines, and corrections are described in a separate guide to VAT returns in Luxembourg.
Legal notice: This text is for informational purposes only and does not replace an individual tax analysis. For VAT in Luxembourg, it is important to verify the taxpayer's status, the type and location of the transaction, the flow of goods, the person liable for settlement, the relevant administrative systems, and current reporting obligations.
