Luxembourg: Changes to the VAT Rates of certain products

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The Government published Circular No. 816 which includes provisions on the temporary reduced VAT rates. 


The changes of the VAT rates are the following: 


  • the 3% reduced VAT rate for the delivery and installation of solar panels (subject to conditions); 
  • the rate reduction for bicycle sales or rentals and household appliance repairs from 8% to 7 %;
  • the use of the reduced rates for deliveries made in December 2022 and  invoiced in 2023;
  • the use of the reduced rates for transactions not requiring invoices for deliveries performed after January 1, 2023.


Businesses must be ready to update their systems the moment the new rates are effective and change them again when the reduced rates end. 


Source: public.lu 

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