Luxembourg VAT Guide 2026: Rates, Refunds & EU Cross-Border Rules
Thomas Weber
Cross-border tax specialist and pension advisor
Disclaimer: For informational purposes only. Not financial, tax or legal advice. Verify with administration.public.lu and consult a qualified professional before making decisions.
Luxembourg has the lowest standard VAT rate in the EU (17%).
Luxembourg VAT Rates 2026
| Rate | Description | Examples |
|---|---|---|
| 17% | Standard | Most goods & services |
| 14% | Intermediate | Wine, advertising, firewood |
| 8% | Reduced | Gas, heating fuel, transport, hairdressers |
| 3% | Super-reduced | Food, medicines, books, eco-renovation |
| 0% | Zero | Certain financial services, land sales |
VAT Registration Threshold
Luxembourg businesses must register for VAT if annual turnover exceeds €35,000. Below this, use the franchise régime (VAT-exempt small business scheme).
Tourist VAT Refunds
Non-EU residents can claim VAT refunds on purchases above €175. Request a form at point of sale and get it stamped at customs before departing the EU.
OSS (One-Stop Shop) for Digital Services
If you sell digital services to EU consumers from Luxembourg, charge VAT at the consumer's home country rate. The OSS scheme allows a single quarterly return through Luxembourg's AED covering all EU countries.
VAT on Property
- Residential new builds: 17% VAT
- Renovation works: 3% super-reduced rate on labour costs
Was this article helpful?
About the Author
Official Sources
Comments
Leave a Comment
Comments are reviewed before publishing. Your email is never shown publicly.