VAT in Luxembourg
The “Loi du 12 février 1979 concernant la Taxe sur la Valeur Ajoutée” or LTVA, which translates to the VAT Act of 1979, was the instrument through which Luxembourg adopted the VAT Directive of the European Union (EU). The VAT system in Luxembourg, locally referred to as “Taxe sur la Valeur Ajoutée” (TVA), operates under the guidance of this act.
Being a part of the European Union, Luxembourg aligns with the VAT guidelines set forth by the European Commission. These guidelines dictate the procedures for VAT registration, returns, compliance, Intrastat, and other related reporting in Luxembourg.
Everything related to VAT in Luxembourg is included in our comprehensive guide below.
Selling in Luxembourg?
Luxembourg – Scope of Taxation
VAT is levied by Luxembourg on taxable persons for the supplies of goods and services made within Luxembourg, as well as on imports and intra-Community acquisitions.
The application of Luxembourg VAT is limited to the territory of the Grand Duchy of Luxembourg. The VAT Law grants the Grand Duke the power to issue regulations to expand or restrict the territorial scope of Luxembourg VAT if deemed necessary or to implement a specific provision.
Generally, the following types of transactions are subject to tax:
- When a taxable individual engages in the selling of goods or services within Luxembourg
- When a taxable individual or a non-taxable legal entity purchases goods from another European Union member state, a process known as Intra-Community acquisition
When goods are imported from regions outside the EU, regardless of the status of the importer
Download the Luxembourg VAT Guide
Luxembourg – General VAT information
| Tax authority | Luxembourg Inland Revenue
|
| VAT in local language | Taxe sur la valeur ajoutée (TVA) |
| Currency | € Euro |
| VAT number format | LU + 8 characters |
| LU12345678 | |
| VAT rates
|
Standard 17%; Intermediate Reduced rate 13% and Reduced rate 7%; Super Reduced rate 3% |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | EUR 30, 000 |
| Non-established | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Allowed – the entities must have economic, organizational, or ownership relationships. Even holding companies that do not generate taxable income are allowed to participate. |
| Voluntary Registration | Available – for resident businesses |
| Intra-EU Dispatches | EUR 200,000 |
| Intra-EU Arrivals | EUR 250,000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Returns | 15th of the following month |
| Frequency | Monthly, quarterly, annually |
| European Sales Listing | 15th of the month following. |
| Intrastat | 10th of the following month |
| Annual Return | 1st March of the following year |
| Electronic Invoicing | Electronic invoicing is mandatory under the Law of May 16, 2019, which concerns electronic invoicing in the context of public contracts and concession contracts. |
Last Updated: 07/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax