VAT Rates in Luxembourg
According to Article 39 of the Luxembourg VAT Law, the standard rate of VAT in Luxembourg is 17%. Article 39 of the Luxembourg VAT Law also stipulates a 14% intermediate reduced rate, an 8% reduced rate, and a 3% super-reduced rate. In Annexes A-C of the VAT Law, specific products subject to each rate are listed.
Read more regarding VAT rates in Luxembourg in our comprehensive guide below.
VAT Rates in Luxembourg
Standard VAT rate |
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| As per Article 39 of the VAT Law in Luxembourg, the typical VAT rate stands at 17%. The same article also outlines a 14% intermediate reduced rate, an 8% reduced rate, and a super-reduced rate of 3%. The specific products that fall under each of these rates are detailed in Annexes A-C of the VAT Law. | |
| Rate | Good or Services |
| 17% | All goods or services not included in the reduced rates table below (Temporarily reduced to 16% as of 2023 to mitigate the effect of inflation). |
Reduced VAT rates |
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| Certain goods and services are eligible for reduced VAT rates. as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 14% | “Intermediate Reduced rate” |
| Grape wine with more than 13% alcohol, fortified wines, sparkling wines, and vin de liqueur; | |
| Solid combustible minerals, mineral oils, and wood that are used as fuel, with the exception of wood intended for heating that falls under the reduced rate; | |
| Detergents and cleaning preparations; | |
| Printed advertising material, commercial catalogues, similar publications, and tourist information publications; | |
| Heating, refrigeration, and steam, with the exception of heating supplied by a heating network that falls under the reduced rate; | |
| Management of credit or loan guarantees by a person other than the one who granted it; and | |
| Custody and management of securities. | |
| 8% | “Reduced rate” |
| Electricity, gas, and heating supplied through a heating network, | |
| Wood intended for heating. | |
| Hairdressing for both men and women | |
| Repairing of bicycles, footwear and leather items, alterations to clothing and household linens | |
| cleaning of private housing and windows | |
| Certain plant protection products as defined by Council Directive 91/414/EEC, | |
| Imports of works of art, antiques, and collector’s items.
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| 3% | “Super reduced rate” |
| Food products intended for human consumption, excluding alcoholic beverages | |
| Construction of a primary residence | |
| Renovation of dwellings without any limitation on the number | |
| Animal feed products | |
| Medical devices and therapeutic articles for the handicapped | |
| Agricultural supplies, except for products under position No. 38.08 of the Custom Code of the tariff of entry duties | |
| Books, newspapers, and periodicals in physical or electronic format, including the hire of these publications from libraries, but excluding material mainly focused on advertising, video content, or music, as well as pornographic material | |
| Shoes and clothing for children up to 14 years of age | |
| Water distribution | |
| Pharmaceutical products used for medical and veterinary purposes, including contraceptives and feminine hygiene products | |
| Restaurant transactions for on-premises food consumption | |
| Lodging in premises reserved by a taxable person for temporary lodging, as well as rental of holiday campgrounds or improved camping grounds | |
| Transport of people | |
| Admission to concerts, theaters, dance and cinema performances, scientific, cultural, educational, economic or professional events, as well as museums, archives, botanical gardens, zoos, nature parks and circuses | |
| Admission to sports facilities and the right to use them | |
| Waste removal and treatment. | |
| Removal and purification of wastewater and septic tanks, and services supplied by funeral homes and cremation; | |
| Services supplied by writers, composers, and performing artists, including the copyright due to them; | |
| Acquisition or construction of housing for use as a principal residence; and | |
| Certain improvements and renovations made for housing used as a principal residence, subject to limitations and conditions to be determined by a regulation of the Grand Duchy. | |
| 0% |
Zero rated products |
| Supplies of goods within the EU | |
| Goods that are exported outside of the EU; | |
| Services that are directly related to the export of goods; | |
| International transportation of individuals; | |
| Financial and insurance services provided to customers located outside of the EU or that are related to goods that are exported outside of the EU; | |
| Goods and services that are provided to diplomatic and consular bodies and personnel, EU institutions, and international institutions. | |
Exempt From VAT |
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| Postage and fiscal stamps sold at face value; | |
| Medical and dental services; | |
| Financial services such as loan negotiation, extension, and management, currency and virtual currency transactions, fund management, and securitization transactions; | |
| Insurance and reinsurance; | |
| Cultural and sporting activities; | |
| Welfare services; | |
| Education. | |
Various countries announced short-term adjustments to their VAT rates in response to COVID-19. This resulted in reductions to the VAT rates on products and services sold by businesses that were particularly hit hard by the pandemic’s economic fallout, such as the hospitality sector. To learn more about the implications of COVID-19 in Luxembourg, please visit our news section by clicking here.
Last Updated: 24/01/2024
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