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Luxembourg VAT – Rates & Registration

If a company not established in Luxembourg is providing ‘taxable supplies’ of goods or services in Luxembourg, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Luxembourg assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Luxembourg. Some of the most common examples are:

  • Importing goods into Luxembourg from outside the European Union
  • Buying and selling goods in Luxembourg
  • Selling goods from Luxembourg which are delivered to customers outside of Luxembourg (business or private customers)
  • Acquiring goods in Luxembourg from another EU country (Intra-community acquisitions)
  • Holding inventory in Luxembourg for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Luxembourg where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Luxembourg, you should contact us immediately for a complimentary consultation.

Luxembourg VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
17% (Standard) LU12345678 € 100,000 € 200,000 (Arrivals)
3 / 8 / 14% (Reduced) € 150,000 (Dispatches)
VAT return periods

Monthly, quarterly or annually depending on turnover

Annual returns

Yes

EC Sales Lists frequency

Monthly or quarterly

EC purchase lists

No

Other reporting requirements

No

Extended reverse charge

The extended reverse charge has limited application in Luxembourg.

Fiscal Representation

Not required. A business established in a country outside the EU may be required to provide a security deposit to secure its VAT liability.

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