VATupdate

VAT rates in Luxembourg

Quick overview

Standard Rate Other Rates
17% 8%, 3% and 14%

The local name for VAT in Luxembourg is Taxe sur la valeur ajoutée (TVA).

Recently, Luxembourg introduced the zero rate to vaccines and in vitro medical devices.  Earlier, a VAT rate reduction (super-reduced 3% rate) for energy saving renovations of older houses was included in the 2021 budget. For more information about (recent) rate change developments in Luxembourg, please click here.

Standard rate: 17%

This is in place since 1 January 2015.  Before that, the standard rate was 15%. This rate applies for all transactions that take place in Luxembourg, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Luxembourg applies various exemptions with a refund of tax paid at preceding stages (zero rates), such as intra-Community and international transport, intra-Community supplies of goods, exports of goods (and related services) to non-EU countries, sea vessels and aircraft and related goods/services, and services to goods and goods under customs control.

Reduced rate 1: 8%

Examples of transactions subject to this rate are:

  • Window cleaning and cleaning in private households
  • Minor repairing (including mending and alteration) of bicycles, shoes and leather goods, and clothing and household linen
  • Hairdressing

Super-reduced rate: 3%

Examples of transactions subject to this rate are:

  • Foodstuffs, including plants and part of plants, seeds and grains for preparation of infusions or teas; waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; animal or vegetable fats and oils for human and animal consumption or normally intended for use in the preparation of foodstuffs; live fish, for human and animal consumption or normally intended for use in the preparation of foodstuffs; agricultural salt; salt licks.
  • Water supplies
  • Proprietary medicinal products, ready-made medicinal products and medicinal products, as defined in Article 1 of the law of 11 April 1983 regulating the publicity and marketing of pharmaceutical products – Veterinary medical products as defined in Article 1 of the law of 18 December 1985 concerning veterinary medical products – Pharmaceutical preparations – Products used for contraception; Products used for sanitary protection: sanitary towels (pads), tampons, panty liners, period panties, menstrual cups, menstrual sponges and similar feminine hygiene products
  • Therapeutic goods; medical equipment for the disabled; spectacles, goggles and the like, corrective equipment.
  • Certain transport of passengers
  • Books (except those with content predominantly for adults), including on other means
  • Newspapers
  • Periodicals (except those with content predominantly for adults)
  • Admission to cultural services (shows, cinema, theatre)
  • Admission to amusement parks
  • Reception of radio and TV broadcasting services other than those whose content is exclusively for adults, regardless of the electronic communications network used
  • Supply of services by writers, composers and performing artists
  • Hotel accommodation
  • Restaurant and catering services (except for alcoholic beverages)
  • Admission to sporting events (if not exempt)
  • Use of sporting facilities
  • Supplies by undertakers and cremation services
  • Collection of domestic waste and street cleaning, other than the supply of such services by bodies referred to in Article 13 of the Directive 2006/112/EC

Parking rate: 14%:

Member States which, at 1 January 1991, were applying a reduced rate to the supply of goods or services other than those specified in Annex III may apply the reduced rate to the supply of those goods or services, provided that the rate is not lower than 12 %.

The parking rate of 14% applies to:

  • Wines of fresh grapes with 13% vol. or less (fortified wines, sparkling wines and so-called liqueur wines excluded)
  • Fuels: solid mineral fuels, mineral oils and wood intended for use as fuel, with the exception of wood for heating (firewood)
  • Washing and cleaning products
  • Printed advertising material, commercial catalogues and the like; tourist publications
  • Supply of heat other than supply of district heating; supply of air conditioning
  • Management and safekeeping of securities; management of credit and credit guarantees by a person or organisation other than that who granted the credit.

For a description of how the VAT rates are structured in the European Union, please see here.  The European Commission has also made an EU VAT rate database available where you can find the applicable VAT rate by entering the CN/CPA code of the goods respectively services (you can find more information here).

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on 10 April 2021.

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