VAT in Luxembourg
Luxembourg implemented the European Union (EU) VAT Directive with the “Loi du 12 février 1979 concernant la Taxe sur la Valeur Ajoutée” or LTVA. Luxembourg’s VAT system is governed by the VAT Act of 1979 and VAT is locally known as “Taxe sur la Valeur Ajoutée” (TVA).
As a member of the European Union, Luxembourg adheres to the European Commission’s VAT regulations. These regulations establish the requirements for Luxembourg VAT registration, returns, compliance, Intrastat, and similar reporting.
Everything related to VAT in Luxembourg is included in our comprehensive guide below.
Selling in Luxembourg?
Luxembourg – Scope of Taxation
Transactions that are taxable generally include:
- The sale of products or services in Luxembourg by a taxable individual.
- A taxable person or non-taxable legal person buys goods from another member state of the European Union, called Intra-Community acquisition.
- Imports of goods from outside the EU, irrespective of the importer’s condition.
Taxable persons include:
A taxable person is defined as any business or individual – whether or not registered for VAT – who engages in independent and regular economic activity under Luxembourg VAT Law.
Anyone engaging in taxable economic activity in Luxembourg must register for VAT purposes. Any activity of producers, dealers, or those providing services, including mining and agricultural operations, professional activities, is considered an “economic activity.” As well as:
- The continuous exploitation of physical or intangible property to generate income.
- Any prospective income-generating activity, regardless of its aims or outcomes.
- Any ongoing action conducted with the goal of generating revenue.
Further economic activities include the following:
- Providing products or services.
- Intra-Community acquisitions.
- Imports made in the process of doing business.
Luxembourg – General VAT information
| National Legislation | Luxembourg Land Registration, Estates and VAT Department |
| VAT in local languages | Taxe sur la valeur ajoutée (TVA) |
| VAT number format | 10 letters [LU + 8 digits] |
| LU12345678 | |
| VAT rates | Standard 17%; Reduced 14%, 12%, 8% and 3% |
| Zero-rated (0%) and exempt | |
| Frequency | Monthly, Quarterly, and Annual returns |
| Thresholds
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| Registration | |
| Established | EUR 35,000 |
| Non-established | None |
| Intra-Community acquisitions | EUR 10,000 |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines
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| VAT Return M | 15th of the following month. |
| VAT Return Q | 15th of the month following the quarter at the latest |
| Intrastat M | 10th of the following month |
| Annual Return | 1st March of the following year |
| Recapitulative Annual Return | 1st May of the following year |
Last Updated: 25/11/2022
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