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Luxembourg lowers its VAT rates starting January 1st, 2023

Luxembourg vat rates

Further to the voting of the solidarity package “Solidaritéitspak 2.0”, Luxembourg has decided to lower the VAT rates applicable in the Country.

As a result, the normal value added tax rate is reduced from 17% to 16%, the intermediate rate is lowered from 14% to 13% and the reduced rate from 8% to 7%.

Do you have expenses in Luxembourg linked to your activity?

If you are a business established outside of Luxembourg, you are entitled to claim a refund of the Luxembourg VAT you paid on purchases in the Country, according to the 8th or 13th Directive, depending on where your company is established. As a EU company, you can claim your VAT back starting from 50 € of VAT in a year, if you are a non-EU business, the minimum VAT to claim back is 250 €.

Contact us to get a full analysis of your VAT refund possibilities in Luxembourg.

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