Luxembourg VAT Rates Explained
Luxembourg has the lowest standard VAT rate in the EU at 17%. The country uses a tiered system with four rates.
The Four Luxembourg VAT Rates
- 17% Standard: Applies to most goods and services — electronics, clothing, restaurants, most services.
- 14% Intermediate: Wine, certain fuels, advertising materials, and commercial property management.
- 8% Reduced: Food and non-alcoholic drinks, books and e-books, gas, electricity, hairdressing, certain renovation works.
- 3% Super-reduced: Basic food items, pharmaceutical products, children's clothing and footwear, newspapers and magazines.
FAQ
What is Luxembourg's standard VAT rate?
Luxembourg's standard VAT rate is 17%, one of the lowest in the EU. It applies to most goods and services not covered by reduced rates.
What goods are subject to the 3% super-reduced VAT rate?
The 3% rate applies to basic necessities including most food items, books, newspapers, pharmaceuticals, and children's clothing.
When does the 8% reduced VAT rate apply?
The 8% rate applies to certain goods including gas, electricity, hairdressing, and some renovation services.
What is VAT exempt in Luxembourg?
Financial services, insurance, education, healthcare, and certain cultural services are exempt from Luxembourg VAT.