Luxembourg charges 17% VAT, the lowest standard rate in the EU. Resident small businesses can stay out below EUR 50,000 of turnover; non-residents register from their first taxable local supply. Holdings that charge management fees register, pure share-holding companies do not. Returns are annual, quarterly or monthly by turnover, filed through eTVA, and non-residents need no fiscal representative.
Who needs a Luxembourg VAT number
- Luxembourg companies with taxable activity. Trading and service companies register when they start; a franchise applies below EUR 50,000 of turnover.
- Holdings that invoice. Management fees, recharges or services to subsidiaries make a holding a taxable person.
- Foreign companies selling locally. Goods stored or delivered in Luxembourg, events, services to consumers and real estate services.
- Not needed. B2B services to Luxembourg businesses (the customer reverse-charges) and pure share-holding.
Standard rate
The lowest standard VAT rate in the EU.
Resident franchise
Small Luxembourg businesses can stay out of VAT.
For non-residents
Registration from the first taxable supply.
Online filing
Returns due by the 15th of the following month.
Returns, schemes and what to watch
| Item | Luxembourg |
|---|---|
| Rates | 17%, 14%, 8%, 3% |
| Return frequency | Annual below EUR 112,000; quarterly to EUR 620,000; monthly above |
| Annual return | By 1 May of the following year |
| EU sales listing | Monthly or quarterly for intra-EU B2B supplies |
| OSS and IOSS | Available for EU distance sales and low-value imports |
| VAT group | Possible for closely linked Luxembourg entities |
| Fiscal representative | Not required for non-residents |
| Penalties | Fines and interest for late or missing returns |
Luxembourg VAT is cheap and digital. The fines are for people who forget it exists.
Do you need a Luxembourg VAT number?
Tick everything that applies.
Do you need a Luxembourg VAT number?
Tick what you do. You get the answer, the scheme and your filing rhythm.
Lowest in the EU.
Register from the first local supply.
Pure holdings do not.
By turnover.
Luxembourg VAT registration: frequent questions
What is the VAT rate in Luxembourg?
17% standard, with reduced rates of 14%, 8% and 3%. It is the lowest standard VAT rate in the EU.
Does a foreign company need a Luxembourg VAT number?
Only if it makes taxable supplies in Luxembourg that are not reverse-charged: goods stored or sold locally, services to consumers taxed in Luxembourg, events, or real estate services. B2B services to Luxembourg businesses are usually reverse-charged by the customer.
Is there a VAT registration threshold in Luxembourg?
Resident small businesses can use the franchise up to EUR 50,000 of turnover. Non-resident businesses have no threshold and register from the first taxable supply.
Does a Luxembourg holding company need a VAT number?
A holding that only owns shares is not a taxable person. A holding that charges management fees to its subsidiaries is, and must register.
How often are Luxembourg VAT returns filed?
Annually below EUR 112,000 of turnover, quarterly up to EUR 620,000 and monthly above, plus an annual return by 1 May. Returns are filed electronically through eTVA.