Luxembourg – Clarification of the concept of partial exemption
Country Briefs
Luxembourg
3 June 2024
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Whether you’re a European or non-European company, establishing certain activities in Luxembourg may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Luxembourg.
If you deal with companies in Luxembourg, you may be able to claim a Luxembourg VAT refund.
In this VAT guide, we have brought together the specific features of the Luxembourg regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
Basic information |
|
|---|---|
| EU membership | 1957 |
| ISO code | LU |
| VAT introduced in Luxembourg | 1969 |
| VAT name in Luxembourg | Taxe sur la valeur ajoutée (TVA) |
| VAT ID format in Luxembourg | LU99999999 |
| Territories with special status in Luxembourg | n/a |
VAT rates in Luxembourg |
|
| Standard VAT rate | 17 % |
| Reduced VAT rate (1) | 14 % |
| Reduced VAT rate (2) | 8 % |
| Super reduced VAT rate | 3 % |
| VAT parking rate | 14 % |
| Zero VAT rate | yes |
Thresholds triggering VAT reporting obligations in Luxembourg |
|
|---|---|
| Intrastat threshold at introduction | EUR 250,000 |
| Intrastat threshold on dispatch | EUR 200,000 |
| Distance selling threshold | As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales. |
Reporting frequency in Luxembourg |
|---|
| Intrastat return | monthly depending on threshold |
|---|---|
| EC Sales List (ESL) return | monthly, quarterly |
| VAT returns | monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions |
|---|---|
| Reporting currency | EUR |
VAT-related penalties in Luxembourg |
|
| Failure to file a VAT return | Penalty of EUR 250 to 10,000 per return. |
| Late payment of VAT | A fine of 10% to 50% of the VAT due per year. If a formal notice has been issued, the administration will apply an additional interest of 7.2% per year from the date of issuance of the formal notice. |
| Failure to report ESL/DEB | Penalty of EUR 250 to 10,000 per return. |
Useful links on VAT in Luxembourg |
|
| Tax Administration in Luxembourg | Tax authorities |
| Ministry of Finance in Luxembourg | Ministry of Finance |
| Check a VAT number in Luxembourg | Check a VAT number |
| EU VAT Guide | EU VAT Guide |
|---|
Need VAT assistance in Luxembourg? Contact us now.
A foreign company carrying out transactions in Luxembourg subject to Luxembourg VAT, may be required to appoint a tax representative. Established in Luxembourg, the fiscal representative will fulfill the company’s VAT obligations to the Luxembourg tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Luxembourg.
Intra-Community and Luxembourg VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Luxembourg, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Luxembourg? Contact us now.
The VAT rates currently in force in Luxembourg are as follows:
Need a tax representative in Luxembourg? Contact us now.
Do you need a VAT fiscal representative in Luxembourg? Certain operations may require VAT registration and the filing of VAT returns in Luxembourg:
To check whether your activities give rise to VAT obligations in Luxembourg, use our VAT simulator .
Need a VAT tax representative in Luxembourg? Contact us now.
In Luxembourg , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Luxembourg? Contact us now.
You may need a VAT number in Luxembourg to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification.
Luxembourg VAT is named Taxe sur la valeur ajoutée (TVA)and the VAT numbers in Luxembourg have the following structure: LU99999999.
The administrations in charge of VAT in Luxembourg are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Luxembourg, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Luxembourg, use our VAT simulator or contact us.
Companies with a VAT number in Luxembourgmust complete and file dVAT decl arations in Luxembourg detailing all taxable income (sales) and expenses (costs), at regular intervals:monthly, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions.
Failure to comply with the deadlines imposed by the Luxembourg authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Luxembourg:
Need VAT assistance in Luxembourg? Contact us now.
In addition to VAT returns, companies may be required to provide the Luxembourg authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Luxembourg can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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