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Generic Tax Name VAT
Tax name in the national language Taxe sur la valeur ajoutée
Tax name in English Value-added tax
Member State LU-Luxembourg
Tax in force since 1970/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law of 12 February 1979 on value-added tax (Mémorial A 1979, p. 451) as subsequently amended; various Grand Ducal Regulations and administrative circulars.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

None



Comments

Grand-Duchy of Luxembourg.

 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 25,000.00  EUR/Natcur
Comments

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
10.00 %
Flat rate compensation percentage for forestry:
4.00 %
Flat rate compensation percentage for fisheries:
Comments

There is a special scheme on the following





Comments

Special derogations to continue to tax (annex X)




Comments

Special derogations to continue to exempt (annex X)













Comments


Comments

Any natural or legal person who habitually performs independent activities connected with an economic activity.

Any person who occasionally supplies a new means of transport.

 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments

The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments

Tax object

  • Supply of goods or services for consideration within Luxembourg by a taxable person in the course of his business.
  • Intra-Community acquisitions of goods for consideration within Luxembourg by a taxable person in the course of his business or by a non-taxable legal person.
  • Intra-Community acquisitions of new means of transport for consideration within Luxembourg by a taxable person in the course of his business or by a non-taxable legal person or by any other non-taxable person.
  • Importation of goods from third countries or territories.
  • Application by a taxable person of goods forming part of his business assets for their disposal free of charge, or, more generally, for purposes other than those of his business, where the VAT on those goods or the component parts thereof was wholly or partly deductible.
  • Use of goods forming part of the assets of a business by a taxable person for purposes other than those of his business, where the VAT on such goods was wholly or partly deductible, and supply of services carried out free of charge by a taxable person for purposes other than those of his business.

 Basis of assessment - taxable amount

  • In respect of the supply of goods or services, everything which constitutes consideration obtained or to be obtained by the supplier (VAT excluded).
  • In respect of intra-Community acquisitions of goods, everything which constitutes consideration obtained or to be obtained by the supplier, or the purchase price of the goods, or in absence of a purchase price, the cost price, determined at the time of supply.
  • In respect of importation of goods, the value for customs purposes, including, insofar they are not already included, all taxes, duties, levies and other charges due, excluding the VAT to be levied, and any incidental expenses.
  • In respect of application or disposal of goods forming part of the business assets, the purchase price of the goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time of the application or disposal.
  • Where goods forming part of the assets of a business are used for purposes other than those of the business, or services are carried out for free, the full cost to the taxable person of providing the services.
 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

Articles 132 and 135 of Directive 2006/112/CE


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

None



Comments

Deductions (normal VAT scheme)

Tax deductible by a taxable person:

  • paid or due in respect of supplies to the taxable person of goods and services, carried out by another taxable person,
  • due in respect of or on transactions treated as intra-Community supplies of goods,
  • due or paid in respect of the importation of goods,
  • due in respect of the application by the taxable person for the purposes of his business of goods produced, constructed, extracted, processed, purchased or imported in the course of such business, where the VAT on such goods, had they been acquired from another taxable person, would not be wholly deductible,

in so far the goods and services are used for transactions subject to VAT.

Tax paid or due not deductible by a taxable person:

  • the goods or services are not used for transactions subject to VAT,
  • the goods or services are used for transactions which are exempt pursuant to Articles 132 and 135 of directive 2006/112/CE,
  • in respect of expenditure which is not strictly business expenditure, such as that on luxuries, amusements or entertainment.

However, tax is deductible

  • for goods and services used for transactions which are exempt pursuant to points (a) to (f) of Article 135(1) of directive 2006/112/CE, where the customer is established outside the EU or where those transactions relate directly to goods to be exported out of the EU,
  • for goods and services used for transactions which are exempt pursuant to points (j) to (l) of Article 135(1) of directive 2006/112/CE, where the taxable person carrying out those transactions has opted for application of VAT to his transactions.

Exemptions

  • Monetary threshold for goods imported in the personal luggage of travellers from third countries: 300 (430 - air or sea/150 - age under 15 years or member of the crew) EUR.
  • Monetary threshold for goods in small consignments of a non-commercial character sent from a third country by private persons to other private persons: total value of goods not exceeding 22 EUR.
 
Rate(s) Structure
Standard VAT rate Rate: 17.00 %
Comments

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 8.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

The normal rate applies to restaurant and catering services, or part thereof, pertaining to alcoholic beverages.



Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:Yes

Article 114:

  • Super-reduced rate of 3% applied to supplies of goods or services in the categories set out in Annex III (see ticked categories under heading "Article 98(2) 2006/112/CE"), except for window cleaning and cleaning in private households, minor repairs of bicycles, shoes, leather goods, clothing and household linen, and hairdressing, to which the reduced rate of 8% applies,
  • super-reduced rate of 3% applied to children's clothing, children's footwear and housing.

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:Yes

Article 118:

Parking rate of 14% applied to wines of fresh grapes with 13% vol. or less (fortified wines, sparkling wines and so-called liqueur wines excluded), solid mineral fuels, mineral oils, washing preparations, cleaning preparations, trade advertising material, commercial catalogues and the like, tourist publicity, heat energy, cooling energy, management and safekeeping of securities, and management of credit and credit guarantees by a person other than the person who granted the credits.


Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:Yes

Article 122:

Reduced rate of 8% applied to supplies of live plants and other floricultural products, including bulbs, roots and the like, cut flowers and ornamental foliage, and of wood for use as firewood.



Comments

VAT rates:   

Standard rate: 17%

Reduced rate:    8%

Super-reduced rate: 3%

Parking rate: 14%

 
Tax due date

Monthly (14th day of the following month), quarterly (14th day of the following month) or annual (February 28 of the following year if only annual return; April 30 of the following year for recapitulative return if monthly or quarterly returns) tax returns and payments.

 
Tax collector

Administration of indirect taxes (Administration de l'enregistrement et des domaines).

 
Special features

Exports

Article 147 2006/112/CE - goods to be carried in the personal luggage of travellers not established within the Community - Monetary threshold: total value of the supply, including VAT, has to exceed 74 EUR.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 3,092.90 EUR 7.10
2011 2,823.90 EUR 6.69
2010 2,562.20 EUR 6.48
2009 2,456.70 EUR 6.77
2008 2,342.90 EUR 6.22
2007 2,233.60 EUR 6.08
2006 1,920.30 EUR 5.75
2005 1,872.70 EUR 6.30
2004 1,656.90 EUR 5.99
2003 1,479.30 EUR 5.72
2002 1,378.20 EUR 5.57
2001 1,314.00 EUR 5.58
2000 1,236.10 EUR 5.33

Comments