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VAT guide

VAT in Luxembourg, made simple.

Rates, registration, the €50,000 franchise, return deadlines, invoices, EU sales and penalties: everything a Luxembourg business needs to know about VAT, with every rule linked to the law or the authorities.

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Your VAT year
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€
Annual returns€75 a year

One VAT return a year, before 1 March.

Periodic returnAnnual return or declaration
Based on the AED's published thresholds. The AED decides your filing frequency. Prices are Finbros fees per return, excluding VAT.
17% standard rate14%, 8% and 3% for listed goods and services.
VAT returns from €75Registration €250. See our rates.
Free first callWe check your VAT position.
Open on SaturdaysWhen it suits you.
VAT rates

Four rates, one rule of thumb.

The standard rate applies unless the law lists the goods or service in one of its annexes. Luxembourg's rates were cut by one point in 2023 only, except the 3% rate, and returned to their usual level on 1 January 2024.

17%

Standard rate

Everything not listed in the law's annexes, which covers most goods and services businesses sell.

16% in 2023
14%

Intermediate rate

Goods and services listed in Annex C of the VAT law.

13% in 2023
8%

Reduced rate

Goods and services listed in Annex A of the VAT law.

7% in 2023
3%

Super-reduced rate

The goods and services the law reserves for the lowest rate.

3% in 2023

Sources: VAT law of 12 February 1979, art. 39 · AED circular 812-1 on VAT rates from 1 January 2024

Registration and the franchise

Do you need to charge VAT?

Not sure? Our free VAT checker gives you an answer in a minute.

Registration

Register within 15 days.

A business established in Luxembourg that starts a taxable activity registers with the AED (the registration duties, estates and VAT authority) within 15 days of starting, with an initial declaration on MyGuichet.lu or by post.

You need a bank account first. A company sends its articles of association and the managers' ID. The AED then gives you a VAT number: LU followed by 8 digits, used for EU trade.

Who else must register:

  • Foreign businesses whose sales are taxable in Luxembourg, in most cases.
  • Non-taxable legal persons buying more than €10,000 of goods a year from other EU countries.
  • Franchise and exempt businesses, before cross-border services or EU purchases where they owe the VAT.

Source: Guichet.lu, registration for VAT

Small business franchise

Up to €50,000: no VAT.

Since 1 January 2025, a business established in Luxembourg with annual turnover up to €50,000 can use the franchise. It does not charge VAT and files no VAT returns, but it cannot recover the VAT on its purchases.

  • Up to €50,000: franchise applies.
  • Up to €55,000: the franchise continues until the end of the year, then stops the next year.
  • Over €55,000: the franchise stops the day after you cross the threshold.

You can opt out and charge VAT anyway, for example to recover VAT on large purchases. The change applies from the following month, for at least one calendar year. Franchise invoices must say:

TVA non applicable – Article 57bis de la loi modifiée du 12 février 1979

Sources: VAT law of 12 February 1979, art. 57bis · AED, FAQ on the small business franchise

VAT returns

How often you file depends on your turnover.

Annual turnover excluding VAT decides your filing frequency. The AED sets it, and the monthly scheme is the legal default.

Up to €50,000
Franchise
No VAT charged, no VAT returns. Declare last year's turnover before 1 March.
Up to €112,000
Annual
1 return a year, before 1 March.
€112,000 to €620,000
Quarterly
4 returns, each before the 15th of the following quarter, plus an annual return before 1 May.
Over €620,000
Monthly
12 returns, each before the 15th of the following month, plus an annual return before 1 May.

Sources: Guichet.lu, VAT returns · Guichet.lu, tax calendar · VAT law of 12 February 1979, art. 57bis

Online only. Since 1 January 2020, every return is filed electronically on eCDF, which needs a LuxTrust certificate.

Stopping your activity? File the annual return within 2 months and pay any balance.

Audits. The AED can ask for your accounting data in its electronic FAIA format. Keep books and invoices for 10 years.

Sources: Guichet.lu, VAT returns · Guichet.lu, tax calendar · Code de commerce, art. 16

Invoices

What a Luxembourg invoice must show.

A missing mention is one of the breaches the AED can fine. Two lists, depending on the amount.

Invoices over €100

All taxes included.

  • Your company name, legal form, registered office and RCS number
  • Your business permit number
  • A unique, sequential invoice number and the issue date
  • Your VAT number
  • The full name and address of you and your customer
  • The date of the supply, or of the deposit
  • The quantity and nature of the goods or services
  • The price excluding VAT, by rate
  • The VAT rate and amount, by rate
  • The reason when no VAT is charged

Simplified, €100 or less

All taxes included.

  • The issue date
  • Your name and address
  • What was sold
  • The price including VAT
  • The VAT amount, or what is needed to calculate it
Business customersInvoice by the 15th of the month after the supply, and when a deposit is paid.
ConsumersInvoice within one month of the supply.
No VAT charged?Say why. For an EU business customer, check its VAT number in VIES and show it on the invoice.

Sources: Guichet.lu, invoices · Luxembourg Single Window for Logistics, VAT sanctions and remedies

Selling in the EU

Cross-border sales, and what changes next.

Services

Services to EU businesses

When your EU business customer owes the VAT in its own country, your invoice carries the mention "auto-liquidation" (reverse charge), and the sale goes in your recapitulative statement, monthly or quarterly as you choose.

Sources: Guichet.lu, recapitulative statements · Guichet.lu, invoices

Goods

Goods to EU businesses

Intra-EU supplies of goods are reported monthly. Quarterly is allowed while they stay at or below €50,000 a quarter. Statements are filed on eCDF before the 25th of the following month.

Source: Guichet.lu, recapitulative statements

Small businesses

The EU franchise

A small Luxembourg business with EU turnover up to €100,000 can also apply the franchise in other member states, within each country's threshold. It registers in advance on MyGuichet.lu and files quarterly turnover declarations.

Sources: Guichet.lu, cross-border franchise scheme (May 2026) · AED, FAQ on the small business franchise

Coming, not yet law

E-invoicing between businesses

Draft law 8815, filed on 30 July 2026, plans mandatory electronic invoices between Luxembourg businesses. It can still change before Parliament votes.

  1. 1 January 2028All businesses must be able to receive e-invoices.
  2. 1 July 2028Large and medium businesses start issuing them.
  3. 1 January 2029All businesses issue them.

Source: eFacturation.lu, draft law 8815 on B2B e-invoicing

What is at stake

When VAT goes wrong.

The sanctions the AED can apply, and your right to contest them. Behind on your returns? See catching up on late filings.

Late or missing return, invoice or statement

A fine of €250 to €10,000 per breach.

Sources: VAT law of 12 February 1979, art. 76 and 77 · Luxembourg Single Window for Logistics, VAT sanctions and remedies

Return not filed

The AED can assess the VAT itself, and add a fine of 10% to 50% of any VAT that went unpaid.

Source: VAT law of 12 February 1979, art. 76 and 77

VAT paid late

A fine of up to 10% a year of the VAT due.

Sources: VAT law of 12 February 1979, art. 76 and 77 · Luxembourg Single Window for Logistics, VAT sanctions and remedies

Documents withheld during an audit

After a warning, up to €25,000 per day of delay.

Source: Luxembourg Single Window for Logistics, VAT sanctions and remedies

You disagree with an assessment

You have 3 months from notification to file a reasoned claim with your tax office.

Source: Luxembourg Single Window for Logistics, VAT sanctions and remedies

Prices

Your VAT, handled, at a fixed price.

We register you and prepare and file every return on eCDF. €75 per return, excluding VAT.

VAT registration

Initial declaration with the AED

€250once

Annual filer

Up to €112,000 turnover

€75a year
1 annual return

Quarterly filer

€112,000 to €620,000

€375a year
4 quarterly + 1 annual return

Monthly filer

Over €620,000

€975a year
12 monthly + 1 annual return

Source: Finbros services and rates

Common questions

VAT, answered.

What business owners ask us most about VAT in Luxembourg.

Book a free first call

The standard rate is 17%. Goods and services listed in the annexes of the VAT law take 14%, 8% or 3%. The rates were one point lower in 2023 only, except the 3% rate.

Sources: VAT law of 12 February 1979, art. 39 · AED circular 812-1 on VAT rates from 1 January 2024

A business established in Luxembourg that starts a taxable activity must register with the AED within 15 days. If its annual turnover is up to €50,000, it can use the franchise and charge no VAT, but it still declares its turnover each year.

Sources: Guichet.lu, registration for VAT · VAT law of 12 February 1979, art. 57bis

€50,000 of annual turnover excluding VAT, since 1 January 2025. If you exceed it by up to 10%, the franchise continues until the end of the year. Above that, it stops the day after you cross the threshold.

Sources: VAT law of 12 February 1979, art. 57bis · AED, FAQ on the small business franchise

Once a year with turnover up to €112,000, quarterly between €112,000 and €620,000, and monthly above €620,000. Quarterly and monthly filers also file an annual return. The AED decides your frequency.

Source: Guichet.lu, VAT returns

Monthly and quarterly returns are due before the 15th of the month after the period. The annual return is due before 1 March for annual filers, and before 1 May for quarterly and monthly filers.

Sources: Guichet.lu, VAT returns · Guichet.lu, tax calendar

Online, on the eCDF platform, with a LuxTrust certificate. Since 1 January 2020, returns must be filed electronically.

Source: Guichet.lu, VAT returns

Above €100, your company details and RCS number, business permit number, VAT number, a unique invoice number, both parties' names and addresses, dates, a description, the price excluding VAT and the VAT rate and amount. Invoices of €100 or less can be simplified.

Source: Guichet.lu, invoices

For services to an EU business that owes the VAT in its own country, no: you invoice with the mention "auto-liquidation" and report the sale in your recapitulative statement. Check the client's VAT number in VIES first.

Sources: Guichet.lu, recapitulative statements · Guichet.lu, invoices

The AED can fine €250 to €10,000 per breach, assess the VAT itself, and add 10% to 50% of any unpaid VAT. VAT paid late can carry a fine of up to 10% a year.

Sources: VAT law of 12 February 1979, art. 76 and 77 · Luxembourg Single Window for Logistics, VAT sanctions and remedies

Already for invoices to public bodies. For invoices between businesses, draft law 8815 plans it from 2028, but it is not law yet.

Sources: Guichet.lu, invoices · eFacturation.lu, draft law 8815 on B2B e-invoicing

VAT registration costs €250 and each VAT return €75, excluding VAT. A quarterly filer pays €375 a year for 4 quarterly returns and the annual return. The first call is free.

Source: Finbros services and rates

Ready when you are

Never miss a VAT deadline again.

We register you, file every return on time and keep your books in order. Book a free first call, Saturdays included.

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Rules and prices as they apply in November 2026. General information, not tax advice for your situation. Part of the Finbros Encyclopedia.