VAT in Luxembourg
If you are a foreign company selling to or trading with Luxembourg, you need to address Luxembourgish VAT requirements, whether you sell goods, operate an online store, or provide services. Luxembourg has the EU’s lowest standard VAT rate at 17%, but also applies several reduced rates and has its own specific rules for registration and reporting. Here is an overview to help you understand when you need to register for VAT.
VAT rates and key figures for Luxembourg
| Conditions | Detail |
|---|---|
| Standard rate | 17% (the EU’s lowest standard rate) |
| Reduced rates | 14% (intermediate rate), 8% (reduced rate) and 3% (super-reduced rate) on specified goods and services |
| Zero rate (0%) | Including exports outside the EU and VAT-exempt supplies of goods within the EU (intra-EU) |
| Registration threshold | No threshold for foreign/non-established businesses (registration from the first VATable transaction). Luxembourgish businesses: EUR 50,000 (from 1 January 2025). |
| Distance selling threshold (OSS) | €10,000 total for B2C distance sales within the EU |
| VAT number format | LU + 8 digits (e.g. LU12345678) |
| Reporting period | Monthly by default. Quarterly or annual reporting is possible with lower turnover. |
| Fiscal representative | Not a general requirement. However, the authorities may require the provision of security when registering businesses from outside the EU. |
E-commerce and webshop for Luxembourg
If you sell goods from your webshop to private consumers in Luxembourg, you are subject to the EU’s common rules on distance selling. When your total distance sales to other EU countries exceed EUR 10,000 per year, you must charge Luxembourgish VAT on sales to Luxembourgish consumers.
Du kan slippe for at momsregistrere dig lokalt i hvert land ved at bruge One Stop Shop (OSS), hvor du indberetter og betaler moms for hele dit EU-salg gennem én samlet ordning. Har du derimod et fysisk lager i Luxembourg, eller bruger du en fulfillment-løsning som Amazon Fulfillment Center, opstår der som regel et krav om lokal luxembourgsk momsregistrering, fordi varerne befinder sig i landet. Læs mere om reglerne for Danish e-commerce to the EU.
B2B trade and reverse charge
Ved salg af varer og ydelser mellem momsregistrerede virksomheder gælder ofte reverse charge, hvor det er køberen i Luxembourg, der afregner momsen. Det betyder, at du som sælger i mange tilfælde ikke selv skal opkræve luxembourgsk moms. Luxembourg anvender desuden udvidet reverse charge på en række specifikke ydelser.
The reverse charge mechanism does not always eliminate the obligation to register for VAT. If you hold stock in Luxembourg, purchase and resell goods locally, or make intra-Community acquisitions of goods in the country, you may still be liable for VAT. The assessment depends on the specific transaction, and it is crucial to clarify the situation before the trade commences.
VAT refund in Luxembourg
If your company has incurred expenses subject to Luxembourgish VAT, you can often reclaim the VAT, even without being VAT-registered in the country. This typically applies to expenses for trade fairs and conferences, hotels, fuel, car rentals, taxis, and advertising, as well as purchases of goods and services.
Applications for VAT refunds are subject to fixed deadlines and formal requirements, and errors or missing documentation are the most common reasons for rejection. TIMEVAT handles the entire process, ensuring you get back the VAT you are entitled to.
Here is how TIMEVAT helps you in Luxembourg
TIMEVAT is your specialist firm for foreign finance and exports, boasting years of experience in international VAT and export matters. We are well-versed in the registration rules, reporting requirements, and local procedures in Luxembourg and can act as your company’s VAT representative. We serve as your extended arm in dealings with the authorities, looking after your business as if it were our own.
- Registration for Luxembourgish VAT, correct from the first transaction.
- Filing and Compliance of VAT, EU sales lists, and Intrastat on time.
- VAT Refund of Luxembourgish VAT on your expenses.
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