Luxembourg VAT Rate (2026)
Luxembourg has the lowest standard VAT rate in the EU at 17%. Additional rates include 8% (gas, electricity, some pharmaceuticals), 3% (food, books, medicines, hotel accommodation, passenger transport), and a 3% "super-reduced" rate for specific goods. Luxembourg's low rates made it historically attractive for digital businesses serving EU consumers.
Luxembourg VAT rates — full breakdown
| Rate | Type | Applies to |
|---|---|---|
| 17% | Standard | All goods and services not covered by a lower rate — electronics, clothing, alcohol, tobacco, cosmetics, most services |
| 14% | Reduced | Certain wines; solid mineral fuels, mineral oils and wood intended for use as fuel with the exception of wood for heating; washing and cleaning products; printed advertising matter; heat, cooling and steam with the exception of district heating; safe custody and administration of securities; administration of credit and credit guarantees by a person or organisation other than that granting the credit. |
| 8% | Reduced | Cleaning in private households; minor repairs of bicycles, shoes and leather goods, clothing and household linen; hairdressing; district heating; natural gas; electricity; firewood; LPG; cut flowers and plants for decorative use. |
| 3% | Super-reduced | Foodstuffs; soft drinks; children's clothing and footwear; water supplies; certain pharmaceutical products; certain medical equipment for disabled persons; domestic passenger transport; books; newspapers and periodicals; admission to cultural events and amusement parks; some pay TV/cable TV; agricultural supplies (excluding pesticides); hotel accomodation; restaurants (excluding alcoholic beverages); take away food; bars, cafes and nightclubs, cut flowers and plants for food production; supplies for new building; some construction work on new buildings; admission to sports events; use of sports facilities; undertaker and cremation services; collection of domestic waste; some telephone services |
| 0% | Zero | Intra-community and international transport. |
Luxembourg standard VAT rate history
| Period | Standard rate |
|---|---|
| 1 Jan 1970 – 1 Jan 1971 | 80% |
| 1 Jan 1971 – 1 Jul 1983 | 10% |
| 1 Jul 1983 – 1 Jan 1992 | 12% |
| 1 Jan 1992 – 1 Jan 2015 | 15% |
| 1 Jan 2015 – present | 17% |
Reduced rate categories in detail
14% reduced rate
The 14% reduced rate applies to selected essential goods and services. Use the EU VAT Calculator to calculate VAT at the correct rate for your transaction.
8% reduced rate
The 8% reduced rate applies to selected essential goods and services. Use the EU VAT Calculator to calculate VAT at the correct rate for your transaction.
Super-reduced rate
A super-reduced rate of 3% applies to historically grandfathered categories. Super-reduced rates below 5% are permitted under EU VAT Directive rules only for categories that were already taxed at these rates when the country joined the EU.
Import VAT rate for Luxembourg
Luxembourg applies its standard 17% VAT rate to imports. Import VAT is calculated on the CIF value (goods value + shipping + insurance) plus any applicable customs duty — not just the goods value alone. VAT-registered businesses importing for business use can reclaim import VAT as input tax on their next VAT return.
For goods qualifying for reduced rates on domestic supply (such as food, books, or medicines), the same reduced rate applies on import. The €150 customs duty threshold exempts small consignments from duty but not from import VAT — import VAT applies to all consignments regardless of value.
→ Calculate import VAT into Luxembourg
Tourist VAT refund in Luxembourg
Non-EU residents shopping in Luxembourg can claim a VAT refund on goods taken out of the EU, provided purchases meet the minimum threshold and a tax-free form is obtained at the time of purchase. The goods must be unused and exported within 3 months.
→ Calculate your Luxembourg VAT refund
Key facts
- Registration threshold: €35,000 annual turnover
- Standard rate: 17%
- Reduced rates: 14%, 8%, 3%, 0%
- Tax authority: Administration de l'enregistrement, des domaines et de la TVA
- Currency: EUR
FAQ
What is the VAT rate in Luxembourg?
The standard VAT rate in Luxembourg is 17%.
Reduced rates of 14% and 8% and 3% and 0% apply to essential goods and services.
What is the import VAT rate for Luxembourg?
Import VAT into Luxembourg is charged at the standard 17% rate, applied to the CIF value plus customs duty. VAT-registered businesses can reclaim import VAT as input tax. Use the Import VAT Calculator for a full breakdown.
Why does Luxembourg have a low VAT rate?
Luxembourg's 17% standard rate is the lowest in the EU, which historically made it attractive for digital businesses: EU VAT rules prior to 2015 allowed digital goods to be taxed at the seller's country rate, so companies like Amazon and iTunes operated from Luxembourg. Post-2015 rules changed this so digital services are taxed where the consumer is located.
How do I validate a Luxembourg VAT number?
Luxembourg VAT numbers can be validated through the EU VIES system. Use the VAT Number Checker to verify any EU VAT registration number instantly.
← Back to EU VAT Rates hub | Reduced rates by category | Import VAT rates