VAT in Luxembourg guide

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are subject to VAT.

In Luxembourg, the following VAT rates apply:

• Standard rate: 17%
• Reduced rates: 3%, 8% and 14%

The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for a reduced rate or an exemption.

Luxembourg VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No Luxembourg VAT should be charged, and reverse charge applies unless supplier and customer are established in Luxembourg. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are subject to VAT.

In Luxembourg, the following VAT rates apply:

• Standard rate: 17%
• Reduced rates: 3%, 8% and 14%

The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for a reduced rate or an exemption.

Late – registration penalties

A penalty of between EUR 250 and EUR 10,000 may be assessed for late VAT registration.