The Luxembourg government agreed to reduce the VAT rates by 1% with effect from January 2023 to December 2023, in principle. This is a temporary measure decided in the context of high inflation rates.
The VAT rates applicable in Luxembourg from January 2023 are:
- Standard VAT rate: 16% instead of 17%.
- Reduced VAT rate: 13% instead of 14%.
- Reduced VAT rate: 7% instead of 8%.
Source Marosa
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