Bookkeeping in Luxembourg, what the law expects.
Double entry, the standard chart of accounts, eCDF, what to keep and for how long, and the lighter rules for small sole traders. Every rule is linked to the law or the authorities.
Your business is a
Annual turnover, excluding VAT
- Full double-entry bookkeeping
- Simplified accounts allowed
- Standard chart of accounts (PCN) and eCDF
- Annual accounts filed with the RCS
- Records kept for 10 years, in Luxembourg
Six rules for every set of books.
They apply to sole traders, companies with legal personality, partnerships, economic interest groupings and Luxembourg branches of foreign companies.
Double entry
Every transaction is recorded twice, as a debit and a credit, in a system of books and accounts.
Sources: Guichet.lu, accounting obligations of businesses · Code de commerce, art. 9, 11, 13 and 16
Without delay
Entries are chronological, complete, faithful and recorded without delay, not left for the end of the year.
Sources: Guichet.lu, accounting obligations of businesses · Code de commerce, art. 9, 11, 13 and 16
An inventory
Alongside the books, the business draws up an inventory of what it owns and owes.
The standard chart
Most businesses use the standard Luxembourg chart of accounts, the PCN, and validate their accounts on eCDF.
Kept in Luxembourg
Accounting documents can be on paper or electronic, but are stored in Luxembourg.
For 10 years
Books and documents are kept for 10 years, or 5 years in a liquidation.
Sources: Guichet.lu, accounting obligations of businesses · Code de commerce, art. 9, 11, 13 and 16
The PCN, in seven classes.
The plan comptable normalisé gives every business the same account numbers, so the authorities can read every set of accounts the same way. Its content is set by a grand-ducal regulation of 12 September 2019 and has applied in its current form since financial years starting in 2020.
Businesses that use it prepare and validate their annual accounts on eCDF before filing them with the RCS. See our guide to annual accounts.
- Sole traders, SENC and SCS with turnover up to €100,000 excluding VAT
- Special limited partnerships
- Banks, insurers, pension funds, SICAVs and most CSSF-supervised entities
- Companies that report under IFRS
- 1Equity, provisions and financial debts
- 2Formation costs and fixed assets
- 3Stocks and work in progress
- 4Third parties: customers, suppliers, tax and social security
- 5Financial accounts: bank and cash
- 6Expenses
- 7Income
Keeping your books, month after month.
What your accountant needs
- Sales invoices you issue
- Purchase invoices and receipts
- Bank statements for every account
- Payroll documents, if you have staff
- Loan, lease and other contracts
- Fixed asset purchases and disposals
Keep a duplicate of every invoice you issue: VAT-registered businesses must. On a VAT audit, the AED can also ask for your accounting data in its electronic FAIA format.
Sources: Guichet.lu, invoices · Guichet.lu, VAT returns
The lighter regime for small sole traders
A sole trader whose turnover excluding VAT did not exceed €100,000 in the last financial year can keep simplified accounts instead of full double entry.
Below the same threshold, sole traders, SENC and SCS are outside the PCN and do not file annual accounts with the RCS. They still keep their records for 10 years.
Choosing a legal form? Compare them in SARL, SARL-S or SA.
Sources: Code de commerce, art. 9, 11, 13 and 16 · Guichet.lu, standard chart of accounts (PCN) · Guichet.lu, filing annual accounts with the RCS
Books that aren't kept properly.
Behind on your books? See catching up on late filings.
The AED can fine €250 to €10,000 per breach, including for record-keeping.
Source: Luxembourg Single Window for Logistics, VAT sanctions and remedies
Company managers can be fined €500 to €25,000.
Your bookkeeping, at a fixed monthly price.
Bookkeeping and bank reconciliations, a secure portal and mobile app, and a dedicated contact. Prices exclude VAT. For a full yearly budget, see how much an accountant costs.
Starter
- Up to 2 employees
- Up to 50 transactions a month
Business
- 2 to 10 employees
- Up to 200 transactions a month
Premium
- More than 10 employees
- Up to 500 transactions a month
Source: Finbros services and rates
Bookkeeping, answered.
What business owners ask us most about keeping their books.
Book a free first callYes. Sole traders, companies with legal personality, partnerships, economic interest groupings and branches of foreign companies must keep accounts that follow double-entry rules, with entries recorded chronologically and without delay.
The plan comptable normalisé, the standard chart of accounts set by a grand-ducal regulation of 12 September 2019. It has seven classes: five for the balance sheet, one for expenses and one for income. Businesses that use it validate their annual accounts on eCDF.
Sole traders, SENC and SCS with turnover up to €100,000 excluding VAT, special limited partnerships, banks, insurers and most CSSF-supervised entities, and companies that report under IFRS.
Yes, if turnover excluding VAT did not exceed €100,000 in the last financial year.
10 years, or 5 years in a liquidation. The records can be on paper or electronic, but must be kept in Luxembourg.
Sources: Guichet.lu, accounting obligations of businesses · Code de commerce, art. 9, 11, 13 and 16
Yes. Computerised bookkeeping is not required, and documents can be kept on paper or electronically, as long as they are stored in Luxembourg.
Yes. A holding company is a commercial company with legal personality, so the same bookkeeping obligations apply.
€250 a month for up to 2 employees and 50 transactions, €450 for 2 to 10 employees and up to 200 transactions, and €750 for more than 10 employees and up to 500 transactions, excluding VAT. The first call is free.
Source: Finbros services and rates
Books in order, all year.
Send us your documents through the portal or the app, we keep your books up to date and your filings on time. Book a free first call, Saturdays included.
Rules and prices as they apply in November 2026. General information, not accounting advice for your situation. Part of the Finbros Encyclopedia.