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Luxembourg: standard rate: 17% intermediate and reduced rates: 14% 8% 3%
VAT Calculator calculates the VAT amount as well as the price with and without VAT. The VAT % is pre-filled, but you can change it or clear the value. The results are rounded to your desired precision. You can also make a currency conversion.
You can also choose the VAT% by clicking the percentages in the tables below.
Luxembourg | |
| standard rate | 17% Most taxable goods and services unless they are expressly subject to the intermediate, reduced or super-reduced rate or exempt from VAT. |
| intermediate and reduced rates | 14% Includes certain wines made from fresh grapes with an alcohol content of no more than 13%, certain solid mineral fuels and mineral oils, laundry and cleaning preparations, specified advertising materials and commercial catalogues, heat, cooling and steam other than district heating, and certain custody and management of securities and management of credit or credit guarantees. 8% Includes gas used for heating, lighting or powering engines, electricity, district heating, firewood, live plants and floriculture products, hairdressing, certain repairs of household goods, cleaning of private homes, specified plant-protection products permitted in organic farming, and bicycles including their rental and repair. From 1 January 2025, works of art, collectors’ items and antiques are also subject to 8% where the margin scheme is not used. 3% Includes food other than alcoholic beverages, animal feed, certain medical and pharmaceutical products, qualifying books, newspapers and periodicals, clothing and footwear for children under 14, water supplies, restaurant and catering services excluding the alcoholic-drink component, accommodation, passenger transport, admission to many cultural events and sports facilities, certain waste and wastewater services, funeral services and specified services supplied by authors and artists. Subject to conditions, the 3% rate also applies to certain construction and renovation work on a dwelling used as a main residence and to the supply and installation of solar panels on specified buildings. |
| exempt with deduction | Exports of goods outside the European Union, qualifying intra-Community supplies, certain international transport transactions and specified transactions involving ships, aircraft, diplomatic missions and international organisations are exempt from VAT. Input VAT attributable to these transactions generally remains deductible. |
| exempt without deduction | Subject to the statutory conditions, exemptions include certain postal services, many financial, banking and insurance transactions, specified real-estate transactions, medical treatment and hospital care, certain social services, education and training, and specified cultural, sporting and non-profit activities. Input VAT directly attributable to these exempt transactions is generally not deductible. |
| out of scope | Activity performed in a relationship of subordination rather than independently is not an independent economic activity for VAT purposes. Subject to the statutory conditions, a transfer of a whole business or an independent part of a business to another taxable person is also treated neither as a supply of goods nor as a supply of services; the transferee is regarded as continuing the transferor. |
| reverse charge | Under the reverse-charge mechanism, the customer accounts for and pays VAT instead of the supplier. It applies, among other cases, to specified services supplied by taxable persons not established in Luxembourg, emission allowances and gas and electricity certificates. Subject to the statutory conditions it also covers mobile phones, certain integrated circuits, games consoles, tablets, laptops, headphones and specified raw or semi-finished metals. For these latter categories, the supplier remains liable where the invoiced consideration does not exceed EUR 10,000 excluding VAT. |
| margin scheme | The margin scheme applies, subject to the statutory conditions, to taxable resellers of second-hand goods, works of art, collectors’ items and antiques, for example where goods were acquired from a private individual or another reseller applying the margin scheme. VAT is calculated on the positive difference between the selling price and purchase price, with the VAT included in that margin excluded from the taxable amount. VAT must not be shown separately on the invoice. The reduced, super-reduced and intermediate rates do not apply to works of art, collectors’ items and antiques sold under the margin scheme; the standard 17% rate applies to the margin. VAT Margin Scheme calculator |
| small business VAT exemption | A small business established in Luxembourg may use the domestic VAT exemption where its annual Luxembourg turnover does not exceed EUR 50,000 in both the preceding and current calendar year. If the threshold is exceeded by no more than 10% during the year, the exemption may continue until the end of that year, up to EUR 55,000; it cannot be used in the following year. The business does not charge VAT and cannot deduct input VAT. Since 2025, the cross-border SME scheme also allows qualifying businesses to use small-business exemptions in other EU Member States, subject in particular to an EU-wide annual turnover ceiling of EUR 100,000. |
| Past changes: | |
| 1 Jan 2025 | The national small-business VAT exemption threshold rises from EUR 35,000 to EUR 50,000, with a 10% tolerance up to EUR 55,000 during the year of the threshold breach. The EU cross-border SME exemption scheme is also introduced, subject to an EU-wide annual turnover ceiling of EUR 100,000. Luxembourg VAT Authority |
| 1 Jan 2025 | The reduced 8% VAT rate is extended throughout the normal VAT chain to qualifying works of art, collectors’ items and antiques. Where these goods are sold under the margin scheme, the reduced rates cannot be used and the margin is subject to the standard 17% rate. Luxembourg VAT Act at 1 January 2025 |
| 1 Jan 2024 | The temporary VAT reduction ends. The standard rate returns from 16% to 17%, the intermediate rate from 13% to 14%, and the reduced rate from 7% to 8%. The super-reduced rate remains 3%. Luxembourg VAT Authority – Circular No. 812-1 |
| 1 Jan 2023 | Qualifying solar panels and their installation become subject to the super-reduced 3% rate. Bicycles, including qualifying e-bikes, and their rental and repair, as well as repairs of specified household goods, move to the reduced VAT rate. Luxembourg VAT Authority – Circular No. 816 |
| 1 Jan 2023 | For 2023, Luxembourg temporarily reduces the standard VAT rate from 17% to 16%, the intermediate rate from 14% to 13%, and the reduced rate from 8% to 7%. The super-reduced 3% rate remains unchanged. Luxembourg VAT Authority – Circular No. 812 |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. The information was checked on 22 Sep 2026.
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.
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