Luxembourg VAT Rates 2026
Luxembourg (Lëtzebuerg) levies Value Added Tax as TVA (Taxe sur la valeur ajoutée). The standard rate is 17%, applied to most goods and services. Reduced rates of 14% and 8% apply to certain wines and alcoholic beverages.
Rate update
Lowest standard VAT rate in the EU
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 17% | Most goods and services |
| Reduced | 14% | Certain wines and alcoholic beverages |
| Reduced | 8% | Natural gas, electricity, passenger transport, hairdressing, some catering services |
| Super-reduced | 3% | Basic foodstuffs, non-alcoholic beverages, books, medicines, children's clothing, cultural services |
| Parking | 14% | Transitional rate for specific goods (fuel, agricultural equipment) |
Registration and filing
| Registration threshold | EUR 50,000Raised from €35,000 in January 2025 |
| Tax authority | Administration de l'enregistrement, des domaines et de la TVA (AED) |
| Filing frequency | Monthly, quarterly or annual depending on turnover |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/LU endpoint to get Luxembourg data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/LU
# No authentication required for rate lookups
# Response:
# { "country_code": "LU", "tax_type": "vat",
# "standard_rate": 17, "reduced_rates": [14, 8],
# "currency": "EUR", "last_updated": "2026-01-01" }Applying the correct rate in code
For B2B intra-EU sales, validate the customer's VAT number first. A valid registration means reverse charge applies — you charge 0% and the customer self-accounts. For B2C, charge the Luxembourg standard rate.
// 1. Validate the customer's Luxembourg VAT number
const vatCheck = await fetch(
'http://localhost:3000/api/v1/validate/LU/CUSTOMER_VAT',
{ headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());
// 2. Fetch current Luxembourg VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/LU').then(r => r.json());
// → { standard_rate: 17, reduced_rates: [14, 8] }
// 3. Apply the correct VAT treatment
if (vatCheck.valid) {
// B2B intra-EU: reverse charge — you invoice 0%, customer self-accounts
applyRate(0, 'reverse_charge');
} else {
// B2C: charge the Luxembourg standard rate
applyRate(rates.standard_rate, 'standard');
}About Luxembourg VAT
Luxembourg's 17% standard rate is the lowest in the EU, a deliberate policy that historically attracted Amazon, PayPal and other digital giants to book EU sales there before the 2015 place-of-supply reform. It still operates four rates including a 3% super-reduced band and a 14% parking rate on wines and fuels. The entire structure was cut by one point during 2023 as an anti-inflation measure — an EU first.
VAT in Luxembourg is administered by the Administration de l'enregistrement, des domaines et de la TVA (AED). Luxembourg VAT registrations are validated through the EU VIES system — validate a customer's VAT number before applying any zero-rate or reverse-charge treatment.
Sources: European Commission — Taxes in Europe Database (TEDB) · AED Luxembourg (accessed Jun 2026)
Rate history
- 2015Standard rate raised from 15% to 17%
- 2023Temporary 1-point cut to 16% for the calendar year
Frequently asked questions
What is the VAT rate in Luxembourg in 2026?
17% standard — the EU's lowest — plus 14%, 8% and 3% rates.
Why is Luxembourg's VAT so low?
Low consumption tax has long been a competitiveness tool for the small economy, and until 2015 it let digital sellers charge Luxembourg VAT to customers across the EU.
Related concepts and guides: