Luxembourg VAT 2026: Rates, Registration Threshold & How to Calculate It

Luxembourg has the lowest standard VAT rate in the European Union — 17% versus Germany's 19%, France's 20%, and Belgium's 21%. For businesses and consumers, understanding how VAT works in Luxembourg is essential whether you're pricing products, filing returns, or shopping as a tourist.

Luxembourg VAT Rates at a Glance

Who Must Register for VAT?

Any business or freelancer with annual turnover exceeding €35,000 must register for VAT in Luxembourg. Below this threshold, you can use the franchise régime — a VAT exemption that simplifies administration but means you cannot reclaim input VAT on your expenses.

• Charge VAT on your invoices
• File periodic VAT returns (quarterly or annually depending on turnover)
• Remit collected VAT to the AED (Administration de l'Enregistrement, des Domaines et de la TVA)

Calculating VAT

To add VAT to a net price: multiply by 1.17 (standard rate). For example, €100 net + 17% VAT = €117.

To extract VAT from a gross price: divide by 1.17, then subtract from the gross. So €117 gross ÷ 1.17 = €100 net; VAT = €17.

Digital Services and the OSS Scheme

If you sell digital services (software, streaming, e-books) to consumers in other EU countries, you must charge VAT at the customer's country rate — not Luxembourg's 17%. Rather than registering for VAT in each country individually, you can use the One-Stop Shop (OSS) scheme, filing a single quarterly return through Luxembourg's AED that covers all EU countries.

Tourist VAT Refunds

Non-EU residents visiting Luxembourg can reclaim VAT on purchases above €175 at participating retailers. Ask for a refund form (Global Blue or Planet) at the point of sale, have it stamped by customs when leaving the EU, then submit for your refund. The effective saving is roughly 14.5% of the purchase price after refund fees.

VAT on Property

• New residential builds: 17% VAT applies
• Renovation works: the 3% super-reduced rate applies to labour costs on a primary residence (subject to conditions)
• Commercial property: standard 17%

Instantly Calculate Any VAT Amount

Whether you're invoicing, pricing, or checking a receipt, our VAT calculator does the maths instantly:

[👉 Use the Luxembourg VAT Calculator](/calculators/vat-calculator)

Add VAT, remove VAT, or convert between all four Luxembourg rates in seconds.